Morgan Stanley Likes Annuity Issuers’ Investments in Securitized Assets
February 4, 2025 by Allison Bell
Annuity issuers are investing more of their portfolios in securitized assets, such as residential mortgage-backed securities and commercial mortgage-backed securities, and that should help them earn more money.
A team of Morgan Stanley analysts led by Bob Jian Huang has given that assessment in a new commentary on investment trends at North American life and annuity issuers.
Traditionally, because of tax rules, other regulatory constraints and rating agency preferences, U.S. life and annuity issuers put a large majority of their trillions of dollars in reserves in investment-grade corporate bonds.