Derivatives Collateral Calls Could Affect Life and Annuity Issuers: Moody’s

March 21, 2023 by Allison Bell

Hedging programs that usually protect life insurers against big changes in stock prices and interest rates could sometimes add stress, by forcing the insurers to add cash, according to analysts at Moody’s Investors Service.

Manoj Jethani and other Moody’s analysts talk about the concern — calls to add collateral for derivatives arrangements — in a look at how the forces that led to the failure of Silicon Valley Bank and Signature Bank, and the effects of those failures, might affect life insurance and annuity issuers.

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Originally Posted at ThinkAdvisor on March 16, 2023 by Allison Bell.