Life Insurers’ Preference for Familiar Bond Issuers Limits COVID-19 Shock Transmission

Abstract: Despite regulations that encourage diversification and informational symmetry among buyers, insurance companies tend to lend to their current borrowers. This bondholder–issuer relationship moderates the effect of transitory economic shocks such as those associated with the onset of COVID-19.

Keywords: Banking; Finance; Monetary Policy;

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Bibliographic Information

Provider: Federal Reserve Bank of Dallas

Source: Dallas Fed Economics

Publication Date: 2021-10-05