Description: Feature article discussing the 2009 price action - periods of extreme distress and incredible euphoria across the global financial markets. The reversals experienced from asset class lows to their highs have not been seen in decades.

Description: Since insurance contract liabilities are uncertain in amount, an estimate is required. And under most accounting frameworks, the estimate of an uncertain amount should contain some sort of margin for uncertainty. This paper provides a mathematical connection between that margin and the market price of risk as measured by the cost of capital. The connection makes use of the theory of utility and an exponential utility curve.

Description: Feature article discussing how market interest rates and bond yields dropped in response to the global financial crisis in late 2008, and they have struggled to return to their prior levels, in part because the Federal Reserve has made efforts to spur growth and lending in a sluggish U.S. economy.

Description: This article discusses how publicly traded companies fail to realize their full potential due to a lack of clarity in identifying which shareholders they are trying to serve, especially when viewing short term versus long term goals.

Description: The Long and Short (Runs) of Investing in Equities by Peter Yoo from Risks and Rewards Newsletter, March 1999, Issue No. 32.

Description: This essay explores the role that the emerging defined contribution retirement system may be playing in the growth of wealth inequality in the United States. The current system leaves many Americans with little or no retirement savings. Those with higher accumulation levels appear to invest proportionally more in equities, which may have an exponential effect of balances over long time periods. The author hypothesizes that willingness to take investment risk involves the relationship between the amount an investor has accumulated and what she/he needs in order to cover basic costs of living. This is one reason that investors with greater accumulation levels may be able to earn higher rates of return. The essay concludes by suggesting that the U.S. defined contribution system should include all workers and provide additional fiduciary guidance. Examples reforms, both in the U.S. and other countries, are provided.

Description: Some are arguing to require actuaries to fund public plans like an insurance company. It is not the place of the actuary to make this call.

Description: Discusses the effects of inflation and the impact on business. This article sites several challenges that business will encounter during times of inflation.

Description: Great damage is being done to the U.S. economy as a result of the widespread misunderstanding that the Consumer Price Index measures changes in the cost of living.

Description: Feature article summarizing a talk given by Andrew Lo at the SOA 2009 Annual Meeting on the credit crisis and why risk management failed to stop the excessive risk taking.