Comparing asset classes
The Prudential Regulation Authority’s adjustments to the matching adjustment framework mean that assets with highly predictable cashflows, such as whole loan residential mortgage portfolios, can now be considered for MA portfolios.
In this context, Dutch residential mortgages stand out: they combine strong risk characteristics with duration matching and diversification benefits. Importantly, they can also deliver a meaningful uplift in matching adjustment benefit, thereby strengthening insurers’ solvency positions.
Read the full article here.
In this context, Dutch residential mortgages stand out: they combine strong risk characteristics with duration matching and diversification benefits. Importantly, they can also deliver a meaningful uplift in matching adjustment benefit, thereby strengthening insurers’ solvency positions.
Read the full article here.