The expected hedge cost for a hypothetical lifetime GMWB block (see Index Methodology1) is estimated to be 100 bps as of the end of October 2018, down 4 basis points from the previous month, driven by an increase in long-term interest rates.
About the Author(s)
Hedge Cost Index October 2018
The expected hedge cost for a hypothetical lifetime GMWB block (see Index Methodology1) is estimated to be 100 bps as of the end of October 2018, down 4 basis points from the previous month, driven by an increase in long-term interest rates.
Daren Lockwood, Xiaohong Mo, Adam Schenck