The expected hedge cost for a hypothetical lifetime GMWB block (see Index Methodology1) is estimated to be 111 bps as of the end of August 2018, up 4 basis points from the previous month, driven by a decrease in long-term interest rates.
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Hedge Cost Index August 2018
The expected hedge cost for a hypothetical lifetime GMWB block (see Index Methodology1) is estimated to be 111 bps as of the end of August 2018, up 4 basis points from the previous month, driven by a decrease in long-term interest rates.
Daren Lockwood, Xiaohong Mo, Adam Schenck