An analysis by @NickNemo17 suggests U.S. life insurers may be unable to sell private credit assets to purchase long-term U.S. Treasuries without taking marks that could consume most or all of the insurance industry’s surplus. The analysis indicates this constraint could raise the risk of a sharp move in long-term Treasury yields, described as a potential “gamma event.”
Analysis Warns Private Credit Constraints Could Trigger Sharp Long-Term U.S. Treasury Yield Move
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