Swap It! Variable M&E Revenuefor Fixed M&E RevenueSwap It! Variable M&E Revenuefor Fixed M&E Revenue As equity markets decline and ... policyholders’ current account balances as the primary source of revenue to cover their servicing and ...
Description: As equity markets decline and become more volatile, the likelihood of significant guaranteed benefit claims increases, while increases from mortality and expense fees declines. The article illustrates how to use a derivative contract, a properly structured total return swap, to turn a company's uncertain M&E revenue patterns into predictable revenue.Hide
- Authors: Marshall C Greenbaum, Adam Zivitofsky
- Date: Feb 2002
- Competency: External Forces & Industry Knowledge
- Publication Name: Risks & Rewards
- Topics: Enterprise Risk Management>Financial management; Finance & Investments>Derivatives