Lower Interest Rates Hurt: Annuity Issuers
August 14, 2019 by Allison Bell
The Federal Reserve Board has just cut a closely watched, mostly symbolic interest rate it controls by a quarter of a percentage point.
Players out in the bond market itself have been pushing down the market’s own rates for months.
The shift has come after a few years in which rates had been starting to creep up, from levels somewhere down near the center of the Earth.
Executives from some annuity issuers are still emphasizing during their second-quarter earnings calls how much flexible product design decisions and hedging arrangements will protect them from the chill in the air.
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