Misrating the Investment-Grade Corporate Bond Market and Echoes of the Subprime Mortgage Lending Crisis

We previously discussed the fact that the profit mechanism of general account life insurance companies does not work well in the current prolonged low-interest-rate environment. This extended low-rate environment,┬áthe misrating of investment-grade corporate bonds we discuss in this article, foreign insurance companies chasing yield in the American markets without hedging the currency risk, and a … Continue reading Misrating the Investment-Grade Corporate Bond Market and Echoes of the Subprime Mortgage Lending Crisis