Saturday, March 27, 2010
US Insurers Purchase Corporate Bonds in Market 'Raining Gold'
According to the article "U.S. Insurers Purchase Corporate Bonds in Market 'Raining Gold'", found at BusinessWeek.com, discusses how U.S. insurers took advantage of a market that Warren Buffet said was "raining gold". Corporate bonds were bought at an extremely fast pace, while insurers net purchases rose to $153 billion in 2009. This corporate debt rally helped companies such as Prudential and Met Life recover capital that was lost in the housing and stock market slumps of 2008 and 2009. Life insurers, which can hold policymakers premium for decades before paying claims, need to earn returns on funds to pay workers, remunerate investors and ultimately satisfy customers. This is a strong reason that many companies who were shut out of the debt markets during the credit freeze, returned to selling bonds in 2009 as demand returned.
Subscribe to:
Post Comments (Atom)
Plural or possessive?? Insurers....proof carefully.
ReplyDeletepolicymakers premium....major English problem here. What is the subject in this sentence?
credit freeze, ....Why the comma??
Kyle - you need to read things carefully - try it out loud - have someone read it before you submit it. These little mistakes are killers...