Hedge Cost Index December 2016

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By Adam Schenck, Daren Lockwood, Ram Kelkar, Xiaohong Mo | 09 January 2016
The expected hedge cost for a hypothetical lifetime GMWB block (see Index Methodology) is estimated to be 124 bps as of the end of December 2016, down 11 bps from the previous month, driven by an increase in long-term swap interest rates.