Originally a platform for distributing structured notes to broker-dealers, SIMON is adding index-linked annuities to its product suite. Prudential is both an investor and, as of today, a product provider.
Prudential's PruSecure fixed indexed annuity is the first annuity product to be offered on the SIMON structured products platform, which had previously specialized in structured notes. Prudential also invested in SIMON, joining Barclays, Credit Suisse, Goldman Sachs, HSBC, J.P. Morgan and Wells Fargo.
The next downturn will be characterized more by ratings transitions than large-scale impairments, AM Best said, because the non-cyclical industries issuing much of the BBB debt often maintain stable cash flows and remain resilient during downturns.
'Structured annuity sales continue to set records,' said Sheryl Moore of Wink, Inc. 'It is no wonder that we continue to see companies enter this line of business each quarter.'
Though the Fed's target rate has dropped 75 basis points since July 31, money market funds collected $220.9 bn during the next three months. Long-term funds collected just $57.2 bn.