Investment Commonality across Insurance Companies: Fire Sale Risk and Corporate Yield Spreads
Insurance companies often follow highly correlated investment strategies. As major investors in corporate bonds, their investment commonalities subject investors to fire sale risk when regulatory restrictions prompt widespread divestment of a bond following a rating downgrade. Reflective of fire sal...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Cambridge University Press
2019
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| Online Access: | View Fulltext in Publisher |