US life insurers more exposed to ‘risky’ debt than in 2007 – study
Fed research compares current situation to subprime exposure that preceded financial crisis
US life insurers are now more exposed to risky credit than they were in the run-up to the global financial crisis, a study from the Federal Reserve Board claims.
The research, published on March 21, says that since the 2007–09 crisis, “the share of life insurers’ general account assets exposed to below-investment-grade (‘risky’) corporate debt has roughly doubled”.
Ken Kutner, professor of financial stability at Williams College in Massachusetts, tells Central Banking that the situation calls to
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