Research at WellsCanning
Research into the intersection of insurance and investments is at the core of what we do at WellsCanning. We use our industry and investment expertise, combined with quantitative skills, to develop solutions individually tailored to our clients. In addition, we keep abreast of developments in the industry and the markets. If we feel that a general topic or body of research has value to a broader group of our clients, we will share our insights via Research Notes. Notes contained on this website provide examples of the kind of research conducted at WellsCanning.
- Contingency Planning: You survived the Great Recession of 2008/2009 but what about the next problem? Contingency planning identifies various economic and market scenarios and creates a plan to cope. More...
- Determining the Current Duration Risk on your MBS Portfolio: To support the mortgage market, the Federal Reserve purchased $1.3 trillion MBS securities, keeping yields at historic lows. With this program set to expire, what are the implications of MBS durations potentially doubling if market rates increase?
- Other Than Temporary Impairment (OTTI): OTTI is an accounting concept developed to reflect in a company's financial statements the decline in value of investments which are deemed permanent in nature. In today's markets, pricing across many asset classes is more volatile than was the case historically arguing that a strict pricing based rule is not necessarily relevant.
- Preparing for the AMBest Meeting: This article provides a template to assist your organization in the preparation, delivery and appropriate follow up steps for your annual A.M. Best rating meeting.
- How should you select and use a Total Return Benchmark?: As the industry begins to care more about the total return side of the dual objectives of yield and return, you need to make sure you select a relevant index. We help you determine how best to proceed.
- The relationship between book yield and convexity: You're a hold to maturity investor who isn't too concerned about the monthly and annual price fluctuations in your investment portfolio. You don't need to worry about convexity, right? Wrong!