Description: This article suggests ways for small insurance companies to obtain modeling information on more intricate assets, such as collateralized mortgage obligations [CMO], at a low cost.

Description: Interest rate modeling is discussed in this paper with special emphasis on the long and short rate model of Brennan and Schwartz. Comment is made on an unexpected aspect of the solution of the resulting partial differential equation. Also, an analysis is made of the predictive power of the term structure of interest rates. From the Actuarial Research Clearing House 1991 Vol. 1.