US life insurers’ interest rate swaps usage surged in Q2
Counterparty Radar: John Hancock, Principal Financial expanded books by more than half
The aggregate notional of US life insurers’ interest rate swaps positions grew 12% in the second quarter to $1.3 trillion as carriers raced to hedge their books after the Federal Reserve adopted a “higher-for-longer” stance on rates.
The jump in volumes was propelled by significant increases in swaps usage by John Hancock Life Insurance and Principal Financial, according to data from industry filings aggregated by Risk.net’s Counterparty Radar service.
The Manulife subsidiary expanded the
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