nostr:npub1a2cww4kn9wqte4ry70vyfwqyqvpswksna27rtxd8vty6c74era8sdcw83a @preston @jeffbooth

What is your take on the Fed's recent highlight of the liquidity risks in Life Insurers? High exposure to treasuries and CRE can result in liquidity issues. How will this exposure impact retirees and their beneficiaries in an upcoming recession and pullback one CRE markets?

See: Fed Financial Stability report, May 2023

"Over the past decade, the liquidity of life insurers’ assets steadily declined, and the liquidity of their liabilities slowly increased, potentially making it more difficult for life insurers to meet a sudden rise in withdrawals and other claims. Life insurers increased the share of illiquid assets—including CRE loans... "