A.M. Best Special Report: Market Update (1H 06)-- Funding Agreement-Backed Securities.OLDWICK, N.J. -- As evidenced by the decrease in volume over the same period last year, tight credit spreads and a flat yield curve Flat Yield Curve A chart that shows that the yields of bonds with short maturities are equal to the yields of bonds with longer maturities. tempered the issuance of funding agreement-backed securities (FABS FABS Financial Accounting and Budgeting System (DISA) FABS Fly Away Broadcast System FABS Features And Benefits Selling FABS Fraction Absorbed (Gastrointestinal Tract) FABS Flexible Account Billing System ) by U.S. life insurers, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a special report by the A.M. Best Co. On top of the challenges posed by the interest rate environment, U.S. life insurers with FABS programs registered with the U.S. Securities and Exchange Commission (SEC) were required to comply with SEC Regulation AB for offerings commencing in 2006. The additional disclosure and reporting associated with the adoption of Regulation AB has increased issuance costs for SEC-registered FABS programs, especially for those with continuous retail offerings. Life companies displayed discipline during the first half of 2006 as spreads on credits typically purchased to back spread lending programs remained tight relative to funding costs. With fewer opportunities to hit profit targets, insurers put less business on the books than in the same period last year. This is the second installment Regular, partial portion of the same debt, paid at successive periods as agreed by a debtor and creditor. An installment loan is designed to be repaid in certain specified, ordinarily equal amounts over a designated period, such as a year or a number of months. of a periodic research piece by A.M. Best to provide commentary on recent trends and developments on FABS and registered non-FABS programs of U.S. life insurers. BestWeek subscribers can download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. a PDF (Portable Document Format) The de facto standard for document publishing from Adobe. On the Web, there are countless brochures, data sheets, white papers and technical manuals in the PDF format. copy of all full special reports at no additional cost or a combination of the PDF copies plus all related spreadsheet spreadsheet Computer software that allows the user to enter columns and rows of numbers in a ledgerlike format. Any cell of the ledger may contain either data or a formula that describes the value that should be inserted therein based on the values in other cells. files of the report data at no additional cost from our Web site at www.bestweek.com. Nonsubscribers can download a PDF copy of the full special report (8 pages) for $55 or a combination of the PDF copy plus the spreadsheet file of the report data for $140 from our Web site at www.bestweek.com. Call customer service for more information, (908) 439-2200, ext. 5742. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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