The expected hedge cost for a hypothetical lifetime GMWB block is estimated to be 128 bps as of the end of December 2017, up 1 basis point from the previous month, driven by a slight decrease in long-term interest rates.
About the Author(s)
Hedge Cost Index December 2017
The expected hedge cost for a hypothetical lifetime GMWB block is estimated to be 128 bps as of the end of December 2017, up 1 basis point from the previous month, driven by a slight decrease in long-term interest rates.
Daren Lockwood, Xiaohong Mo, Adam Schenck