Covid shock could topple US insurers’ exotic CLOs
A coronavirus-induced recession could inflict big losses on US insurers’ unconventional collateralised loan obligations (CLOs) assets – including highly-rated tranches – a stress test by the National Association of Insurance Commissioners (NAIC) shows.
“Atypical” CLOs, those the NAIC describes as having unusual payment features and non-standard principal balances, made up $1.4 billion of US insurers’ aggregate assets as of end-2019, an increase of 40% year-on-year. This does not include CLO
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact [email protected] to find out more.
You are currently unable to copy this content. Please contact [email protected] to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
More on Risk Quantum
7 days in 60 seconds
Behavioural finance, alt data and risk-free rate problems
The week on Risk.net, June 27–July 3, 2020
Receive this by email