Convertible Bonds – An Investment Solution for Insurance Portfolios
Benefits of Convertibles for Insurance Investors: Capital Efficiency– Convertibles are treated as bonds for Risk Based Capital charges. They hold up far better than equities during volatile markets. Diversification– Convertibles have low correlation to Bonds which is a benefit to Bond heavy investments. Interest Rate Sensitivity– Convertibles perform relatively well when interest rates rise. Asymmetry– Due to …
Convertible Bonds – An Investment Solution for Insurance Portfolios Read More »
