The expected hedge cost for a hypothetical lifetime GMWB block is estimated to be 108 bps as of the end of April 2018, down 7 basis points from the previous month, driven by an increase in long-term interest rates.
About the Author(s)
Hedge Cost Index April 2018
The expected hedge cost for a hypothetical lifetime GMWB block is estimated to be 108 bps as of the end of April 2018, down 7 basis points from the previous month, driven by an increase in long-term interest rates.
Daren Lockwood, Xiaohong Mo, Adam Schenck