The NAIC released stress testing results on U.S. Insurers’ exposure to Collateralized Loan Obligations (CLO) Year-End 2020. The 2021 Stress tests examined the resilience of CLOS under three different Scenarios. The year-end 2020 stress test mirrors findings from the year-end 2019 stress test, wherein Normal CLO A-rated tranches experienced losses under the worst-case Scenario. In… Continue reading NAIC Releases Stress Testing Report on U.S. Insurers’ Collateralized Loan Obligations Year-End 2020 Exposure
Tag: CLO
Insurance Industry at Risk with $158 Billion CLO Bet
They’ve been billed as a solution to the rock-bottom interest rates weighing down the returns of America’s asset managers. Collateralized loan obligations — which package and sell leveraged loans into chunks of varying risk and return — promise safety and higher yields. And one industry more than any other has gone all in. Insurers have… Continue reading Insurance Industry at Risk with $158 Billion CLO Bet