MetLife Inc., the insurer that benefited from hedging against interest rate declines in the last two years, has started buying derivative protection against higher interest rates. “Now that rates are extremely low, we’ve taken the opposite tack,” MetLife Chief Executive Officer Steve Kandarian said on a Feb. 15 call with analysts. “We’re buying out of the money hedges to protect against significantly [...]
Delta AirLines, JetBlue Airways, Royal Caribbean Cruises and Carnival Corp may be anticipating a decline in fuel prices as they cut hedges
When a bank makes loans and they start to go bad, at what point should it tell shareholders that the loans are going to lose money? This question is at the heart of new rules being proposed in Europe and the U.S. to address distortions caused by the so-called incurred loss method currently required under loan accounting rules. Click here to continue reading.
Volatility control or risk control is a growing trend among fund managers, insurers selling variable annuities and index providers. In this example, a strategy that rebalances between S&P500 stocks and cash while keeping volatility fixed at 10 percent outperforms the index itself since the start of 2008.
The 10 biggest investors in the SPDR Gold Trust ETF cut their positions in the fourth quarter, before the price of the metal declined and correlations between gold and other assets decreased.
ETFs focused on Italy reported last week the largest outflows since the beginning of 2012, right before the parliamentary elections on Feb. 24-25