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2016: GIC Issuers: Another Stable Year, Headwinds Persist

Throughout our thirty year history, FCM’s stable value management approach has utilized diversified portfolios of traditional guaranteed investment contracts (GICs) issued by major life insurance companies. We have found several relative value advantages in using GICs over other stable value products, including policyholder status and superior yield premiums relative to comparable high-grade obligations. Traditional GIC contracts are general account obligations and backed by the full financial strength and credit of the issuing life insurance company. [...]

May 10th, 2017|

The Stable Value Market Environment – First Quarter 2017

After a volatile last couple months of 2016, the financial markets were relatively quiet during the first quarter. For the most part, the “Trump trade” continued as investors remained optimistic regarding the prospects for a US economy with less regulation and fiscal stimulus in the form of tax cuts and infrastructure spending. However, investor euphoria appeared to wane late in the quarter in response to growing concerns over the ability of President Trump to deliver [...]

May 10th, 2017|

Life Insurance Company Involvement in the Stable Value Market

Stable value is a hybrid which combines intermediate fixed income products with principal protection insurance. Initially, products in this market were provided only by the life insurance industry. With the evolution of the stable value industry, fixed income managers, reinsurers and banks entered. While fixed income managers have gained a large share of the market, the life industry still represents a significant share of the investment management products and wraps provided. Most people think about [...]

January 26th, 2017|

The Stable Value Market Environment 4th Quarter 2016

The surprise election of Donald Trump as the 45th president of the United States was predicted by many “industry experts” to result in disastrous outcomes for both the US economy and equity markets. However, despite some initial trepidation, the election sparked an almost euphoric reaction from financial markets driven by the prospect of an unleashed US economy with less regulation and fiscal stimulus in the form of tax cuts and infrastructure spending. As a result, [...]

January 26th, 2017|