The expected hedge cost for a hypothetical lifetime GMWB block is estimated to be 116 bps as of the end of January 2018, down 12 basis point from the previous month, driven by an increase in long-term interest rates.
About the Author(s)
Hedge Cost Index January 2018
The expected hedge cost for a hypothetical lifetime GMWB block is estimated to be 116 bps as of the end of January 2018, down 12 basis points from the previous month, driven by a an increase in long-term interest rates.
Daren Lockwood, Xiaohong Mo, Adam Schenck