Hedging Strategies: How Insurance Companies Hedge their Indexed Platforms
6.5 هزار بار بازدید -
10 سال پیش
-
Insurance companies are some of
Insurance companies are some of the very best in the world at hedging strategies. In today's all-time low interest rate environment, we have found that many times it can make sense to let an insurance company take the hedging risk off of your plate and onto theirs.
Here is what this video will teach you.
In this video, Rob Brinkman addresses why returns are different between static and dynamic hedge modeling, and he uses an example of covered call writing on American Airlines and Delta Airlines to explain the potential return advantages to uncapped crediting methods as it related to indexed annuity and indexed universal life.
You will also get a basic understanding of options such as calls, puts, etc.
As interest rates remain low, forcing the caps of many index annuities below 4%, uncapped strategies are becoming more popular. Insurance companies generally use a static indexing model that initiates the caps most every FIA uses today.
However, when the S&P 500 returned nearly 30% in 2013, most investors were capped out at 4 or 5%. Though an Index Annuity is designed to be a safe harbor investment, protecting the principal from ANY decline in the market, investors tend to forget about that in years when the market posts high double digit returns.
So, in an effort to garner higher returns some insurance companies are employing dynamic index modeling, where they make daily adjustments in one or two indexes, such as the S&P 500 and the Barclay's Bond Index.
To learn more about Rob and his services, check out http://www.protectmyretirement.today/
To download your free retirement reports, check out http://www.retirementthinktank.com
Here is what this video will teach you.
In this video, Rob Brinkman addresses why returns are different between static and dynamic hedge modeling, and he uses an example of covered call writing on American Airlines and Delta Airlines to explain the potential return advantages to uncapped crediting methods as it related to indexed annuity and indexed universal life.
You will also get a basic understanding of options such as calls, puts, etc.
As interest rates remain low, forcing the caps of many index annuities below 4%, uncapped strategies are becoming more popular. Insurance companies generally use a static indexing model that initiates the caps most every FIA uses today.
However, when the S&P 500 returned nearly 30% in 2013, most investors were capped out at 4 or 5%. Though an Index Annuity is designed to be a safe harbor investment, protecting the principal from ANY decline in the market, investors tend to forget about that in years when the market posts high double digit returns.
So, in an effort to garner higher returns some insurance companies are employing dynamic index modeling, where they make daily adjustments in one or two indexes, such as the S&P 500 and the Barclay's Bond Index.
To learn more about Rob and his services, check out http://www.protectmyretirement.today/
To download your free retirement reports, check out http://www.retirementthinktank.com
10 سال پیش
در تاریخ 1393/04/20 منتشر شده
است.
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