Privately Placed Debt on Life Insurers’ Balance Sheets: Part 1—A Primer

Anne Fournier, Ralf R. Meisenzahl and Andy Polacek
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Anne Fournier: https://www.chicagofed.org/people/f/fournier-anne

Chicago Fed Letter, 2024, vol. 493, 9

Abstract: Life insurers buy long-term assets to match their long-term liabilities and hence are among the largest investors in corporate bonds.1 Over the past decade, insurance companies have shifted their corporate bond investments toward privately placed bonds (private placements). A private placement is an unregistered security that is sold to a limited pool of investors, primarily institutional investors, such as investment banks, pension funds, and insurers. While privately placed bonds accounted for 13% of life insurers’ bond investments in 2004, they accounted for over 20% in 2022 (figure 1).

Keywords: Financial; Economics (search for similar items in EconPapers)
JEL-codes: G11 G22 G32 (search for similar items in EconPapers)
Date: 2024
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