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Why shorting life could be good for long term health
Peter Garnry
16 February 2015 at 14:44 GMT
Video / 16 February 2015 at 14:44 GMT

Why shorting life could be good for long term health

Peter Garnry
Some big life assurance companies could soon prove to be troublesome for investors; that's according to Saxo Bank's Head of Equity Strategy, Peter Garnry. Negative interest rates pose a "huge risk" to life insurers, says Peter, and the industry could be about to experience considerable turbulence. 
Peter lists four companies which could be vulnerable after guaranteeing positive returns to investors some years ago.  And there could be another consequence of this low rate environment: A new bubble, perhaps, in real estate. 
Dimitrios Tamvakas Dimitrios Tamvakas
interesting...hold on, those insurers tradionally hold mostly IG bonds that have gone through a huge rally thus they exhibit negative yields now. So if they sell in the forthcoming ECB QE , they will book massive capital gains, so better dividends for their investors...


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