BAK - Investing Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : BAK - Investing

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: batman10023 who wrote (2886)	6/6/2012 2:26:56 PM
From: thatsnotluck	1 Recommendation of 3249

Re: Treasuries (was Two Buck Chuck...) <<who is getting hurt in your mind (on the financials) with the sharp drop in treasury yields?>> treasury yield drops not a big deal, but if spreads tighten such that other things see sharply lower rates, i think many life insurers are going to have some issues. actually given the accounting differences i think many european insurers are already feeling some stress, at least those with major U.S. operations. companies with lots of fixed pay out annuities (not sure we really have many of those on this side of the pond, more common on the other side) are an issue. ditto noncan DI (i have not looked at UNM for a very long time, but it might be of interest to someone who believes rates will remain low for an extended period). maybe some of the Canadians who have a bunch of mature term to 100 stuff? i think the real question is whether we have low rates for a few years, in which case margins get squeezed, or for long periods like Japan, in which case there are serious long term issues. a few years of low rates i do not think of as a big problem, but if rates on typical insurance company mix stay low for an extended period, watch out.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next