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Is this a side effect of low interest rates not allowing the traditional investment returns expected for the risk? Largely these folks held commercial real esta
by gpapilion 3y ago
Is this a side effect of low interest rates not allowing the traditional investment returns expected for the risk? Largely these folks held commercial real estate and bonds.
I keep thinking the near zero interest rates messed up a lot of things, and we’ll continue to see them pop up for the next few years.
- hnmoonlaunch 3y agoYes. Insurance companies hold gigantic reserves of cash that must beat inflation and for the past 40 years the "safe" return was bonds of all varieties. And they do not have access to the newly created 'temporary' facility to mitigate bond loss as the banks do.