Use of Structured Advances in Risk ManagementUse of Structured Advances in Risk Management This article discusses how FHLB advances, ... premiums that may extend far into the future. Long-term care insurance (LTC) and long-term disability income ...
Description: This article discusses how FHLB advances, i.e. low cost loans, can supply valuable risk management benefits. By carefully structuring an advance to mature coincident with the anticipated premium inflows generated by insurance products, a company can largely eliminate future net cash flows and consequently the need to invest them in uncertain capital markets.Hide
- Authors: Anson Glacy
- Date: Feb 2003
- Competency: External Forces & Industry Knowledge; Technical Skills & Analytical Problem Solving
- Publication Name: Risks & Rewards
- Topics: Finance & Investments>Investments