Impact of recent market turbulence on hedging programs for equity-linked guarantees
20 May 2008
Financial risk management techniques born out of the last period of intense market volatility in late 2001 have weathered their first big real-world test. During the market turbulence in the beginning of 2008, insurers with robust hedging strategies saw their equity-linked guarantee products hold up as anticipated. Our survey of 16 companies with such programs examines these results and documents the behavior of a typical yet hypothetical hedging program during this volatile time.
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Impact of recent market turbulence on hedging programs for equity-linked guarantees
A survey reports the results of financial risk management techniques born out of the last period of intense market volatility in late 2001 that have weathered their first big, real-world test.
Rikiya Ino, Wade Matterson, Peter Sun