I’m really curious what the secondary effects will be if insurance companies are forced to downgrade or outright remove private ratings. For example, will the increased debt capital require rebalancing via equity sales? Any massive downgrades to the parent companies, constraining future debt issuance or causing liquidity issues. I can’t believe the NAIC has allowed this mess to continue as far as it has.
Great coverage. Kudos.
I’m really curious what the secondary effects will be if insurance companies are forced to downgrade or outright remove private ratings. For example, will the increased debt capital require rebalancing via equity sales? Any massive downgrades to the parent companies, constraining future debt issuance or causing liquidity issues. I can’t believe the NAIC has allowed this mess to continue as far as it has.
Fantastic lette - would be great to have links to the original articles/sources, so we could review them in detail.