Bermuda Short-Sellers

By Kerry Pechter
Short-sellers, including hedge funds, sense that the bespoke loans that asset managers have sold to life insurers could fail in the next financial crisis. They may not know it, but the shorts are responding in part to the growth of what RIJ calls the 'Bermuda Triangle' strategy.

CITs: Private Credit’s Pathway into 401(k) Plans

By Kerry Pechter
'Everybody—all the asset managers—are trying to pick CIT dance partners so that they can have product in 401(k) plans,' said Chris Randall at SEI Trust Company. CITs—less regulated, cheaper, and more easily-customized than mutual funds—now house 42% of 401(k) investments.

Australia’s ‘Super’ Gets a Presidential Shout-Out

By Kerry Pechter
Australia's mandatory defined contribution retirement savings system is "a 'good' system that has 'worked out well' for Australia, the president said from the Roosevelt Room. Mr. Trump is flanked by House Speaker Mike Johnson (left) and billionaire Michael Dell, a donor to 'Trump Accounts.'
Featured

Nominal SPIAs Beat Nominal DIAs—But Perhaps Not for Long

By Kerry Pechter
“DIAs may represent a more palatable hedge against longevity risk for retirees than traditional annuities, because they are cheaper and therefore provide more liquidity to retirees,” writes Morningstar's David Blanchett in a Journal of Financial Planning article.

‘Changing of the Guard’ Continues in VA Sales

By John McCarthy
MetLife is selling one-third of what it was two years ago. Prudential is selling half of what it did in the first two quarters of 2012. The biggest gainers since then include Transamerica, SunAmerica, and Lincoln. (This piece was written by Morningstar's annuity product manager.)
News

This is your brain on money

By Editorial Staff
Public television will turn its inquisitive light on the topic of behavioral finance next October 16.

Deloitte publishes annual DC benchmarking survey

By Editorial Staff
There continues to be limited interest in in-plan annuities, with 6% of plans offering this option in 2013, up from 4% in 2012. Ten percent of plan sponsors indicated they are looking into adding an accumulation annuity to their current plan.