Eichhorn: PE-backed insurers trade at much higher funding note spreads
David Eichhorn · David Eichhorn - Serving Clients and Reducing Risk at NISA (EP.403) · Sep 2, 2024 · at 48:28
David Eichhorn, CEO of NISA Investment Advisors, points to funding agreement-backed notes (FABNs) as market pricing evidence of higher risk in PE-backed insurers.
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“Many insurers issue what are called funding agreement-backed notes. Those are policy-level notes. They're parapesu with policyholders, so they're a really great market measure of what's the risk of an insurer, and you just see it in that data. The private equity-backed have a different spread, meaning a much higher spread than what I'll call traditional.”
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