The expected hedge cost for a hypothetical lifetime GMWB block (see Index Methodology1) is estimated to be 117 bps as of the end of January 2019, up 1 basis point from the previous month, driven by a decrease in long-term interest rates.
About the Author(s)
Hedge Cost Index January 2019
The expected hedge cost for a hypothetical lifetime GMWB block (see Index Methodology1) is estimated to be 117 bps as of the end of January 2019, up 1 basis point from the previous month, driven by a decrease in long-term interest rates.
Daren Lockwood, Xiaohong Mo, Adam Schenck