|
09-25-2008, 05:47 PM | #1 | |
Senior Member
Join Date: Jan 2006
Location: Between Iraq and a hard place
Posts: 7,569
|
Actuaries Scrambling to Respond to Sub-Prime Crisis
Here is a snippet from an email I just got
Quote:
|
|
09-25-2008, 05:53 PM | #2 |
Senior Member
Join Date: Oct 2007
Location: Orange County, CA
Posts: 9,483
|
Here is a SWAG, without consulting any actuaries:
In the future, banks should not lend money to people who do not have the income to support the payments. Hey, that's just me, though. I'm no professional. It will be really interesting to see what the actuaries come up with after months of analysis.
__________________
Fitter. Happier. More Productive. "Everyone is against me. Everyone is fawning for 3D's attention and defending him." -- SeattleUte |
09-25-2008, 06:07 PM | #3 | |
Senior Member
Join Date: Jan 2006
Location: Between Iraq and a hard place
Posts: 7,569
|
Quote:
Insurance companies don't hold much in the way of equities; their portfolios are pretty conservative. Mortgage-backed securities are an attractive investment option for insurance companies given their alleged low risk, rate of return and relative predictibility of the timing of the cashflows. Since MBS represent a sizeable portion of an insurance company's portfolio, it leaves them very exposed if they end up being significantly less secure an investment than originally believed. This going to cause a significant shakeup in the industry in terms of investment strategy, ERM and cashflow testing. |
|
09-25-2008, 06:42 PM | #4 | |
Senior Member
Join Date: Oct 2007
Location: Orange County, CA
Posts: 9,483
|
Quote:
__________________
Fitter. Happier. More Productive. "Everyone is against me. Everyone is fawning for 3D's attention and defending him." -- SeattleUte |
|
Bookmarks |
|
|