True North(@TNorth):Jeff Walton explains why capital quality matters so much for insurance companies. The amount of leverage an insurer can take on depends heavily on how rating agencies treat the assets on its balance sheet. - AAA investment-grade debt: ~95% capital credit - Equity: ~45% capital credit - Insurance portfolios: roughly 85% bonds and 15% equities That gap helps explain why assets get structured and tranched to unlock different pools of capital. “It all comes into capital construction... and that’s why there’s a focus on structuring and unlocking different pools of capital.”

True North

@TNorth

True North is a team of investors and analysts exploring the outer edges of Bitcoin, digital credit, finance and macro economics.

参加 October 2024

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True North@TNorth

2026.09.12 13:00

Jeff Walton explains why capital quality matters so much for insurance companies. The amount of leverage an insurer can take on depends heavily on how rating agencies treat the assets on its balance sheet. - AAA investment-grade debt: ~95% capital credit - Equity: ~45% capital credit - Insurance portfolios: roughly 85% bonds and 15% equities That gap helps explain why assets get structured and tranched to unlock different pools of capital. “It all comes into capital construction... and that’s why there’s a focus on structuring and unlocking different pools of capital.” - @PunterJeff