The expected hedge cost for a hypothetical lifetime GMWB block (see Index Methodology1) is estimated to be 104 bps as of the end of September 2018, down 7 basis points from the previous month, driven by an increase in long-term interest rates.
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Hedge Cost Index September 2018
The expected hedge cost for a hypothetical lifetime GMWB block (see Index Methodology1) is estimated to be 104 bps as of the end of September 2018, down 7 basis points from the previous month, driven by an increase in long-term interest rates.
Daren Lockwood, Xiaohong Mo, Adam Schenck