New insurance rules could boost credit options market, finds Citi

The introduction of Solvency II could push European insurance companies to hedge some of the €2.2 trillion of credit assets they hold, according to a report by Citi

TAGS: Options

Comment by: Anonymous. Posted 8 years ago [2015-06-22 00:57:48]

The idea that promising to roll a 6-month hedge for a much longer term exposure will reduce capital requirements strikes me as "curious."