Therefore reaching may impact crit supply to the corporate issuers. Investment decisions of insurance companies are also important cause like banks insurance companies have liabilities to a broad population base. Insurance portfolios are systematically bias toward higher yield bonds and higher CDS bond issuers. This havior appears to relat to the business cycle since reaching for yield is most pronounc during economic expansions.
It is also more pronounc for the insurance
Firms for which regulatory capital requirements are more binding. Rules that discourage risk taking also provide incentives to reach for yield. cause imperfect risk measurement is itself a fundamental feature of financial markets there are no easy fixes to Australia Mobile Database reaching for yield. Author Abstract Reaching for yield the propensity to buy riskier assets in order to achieve higher yields is liev to an important factor contributing to the crit cycle. This paper analyses this phenomenon in the corporate bond market. Specifically we show evidence for reaching for yield among insurance companies the largest institutional holders of corporate bonds.
Insurance companies have capital requirements
To the crit ratings of their investments. Conditional on ratings insurance portfolios are systematically bias toward higher yield higher CDS bonds. the business cycle ing most pronounc during economic expansions. Author Abstract This working paper Albania Phone Number examines the business history of solar energy tween the nineteenth century and the present day. Its covers early attempts to develop solar energy the use of passive solar in architecture fore World War and the subsequent growth of the modern photovoltaic industry.
