Hedge Cost Index June 2016

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By Adam Schenck, Daren Lockwood, Ram Kelkar, Xiaohong Mo | 05 July 2016
The expected hedge cost for a hypothetical lifetime GMWB block (see Index Methodology) is estimated to be 165 bps as of the end of June 2016, up 17 bps from the previous month, driven by a large decrease in long-term swap interest rates.