Hedge Cost Index January 2016

  • Print
  • Connect
  • Email
  • Facebook
  • Twitter
  • LinkedIn
  • Google+
By Adam Schenck, Daren Lockwood, Ram Kelkar, Xiaohong Mo | 05 February 2015
The expected hedge cost for a hypothetical lifetime GMWB block (see Index Methodology) is estimated to be 140 bps as of the end of January 2016, up 16 bps from the previous month, driven by a sharp decrease in long-term swap interest rates.