December 29

Paulson and Sisyphus: Strange Bedfellows

Why would US Treasury Secretary Henry Paulson appear to be like the legendary Sisyphus? As a reminder, as punishment from the gods for his trickery, Sisyphus was compelled to roll a huge rock up a steep hill, but before he reached the top of the hill, the rock always escaped him and he had to begin again. .

December 18

Hedging Death: Goldman Sachs at Your Service

The only major investment banker to laregly escape from the current sub prime woes unscathed, has announced the first of a series of indices that will allow insurers and others to hedge mortality risk.  Goldman Sachs is behind the new QxX index that allows investors to be long or short mortality risk, using real time.

December 12

Credit Risk: Prepare Now For What Will Come Next

While the press concentrates on the ‘sub prime crisis’, because it is so easy to put a face on it, insurers should be focusing heavily on good old fashioned credit risk. Yes, default rates have hit 25 year lows at 0.74% of high yield bonds per S&P, but that measure is backward looking. A more.

November 20

A View of the Economy That Is Worth Your Time

Most economists’ projections of how economies will perform are incredibly similar, due to: 1 – Most forecasters work for firms at financial institutions which are designed to SELL something…and I don’t mean good economic advice.  The economist is considered someone who can explain what at times is the unexplainable…and who can help legitimize the recommendations.