The expected hedge cost for a hypothetical lifetime GMWB block is estimated to be 110 bps as of the end of February 2018, down 6 basis point from the previous month, driven by an increase in long-term interest rates.
About the Author(s)
Hedge Cost Index February 2018
The expected hedge cost for a hypothetical lifetime GMWB block is estimated to be 110 bps as of the end of February 2018, down 6 basis points from the previous month, driven by a an increase in long-term interest rates.
Daren Lockwood, Xiaohong Mo, Adam Schenck