The expected hedge cost for a hypothetical lifetime GMWB block (see Index Methodology) is estimated to be 170 bps as of the end of September 2016, down 2 bps from the previous month, driven by an increase in long-term swap interest rates.
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Hedge Cost Index September 2016
The expected hedge cost for a hypothetical lifetime GMWB block is estimated to be 170 bps as of the end of September 2016, down 2 bps from the previous month, driven by an increase in long-term swap interest rates.
Daren Lockwood, Xiaohong Mo, Adam Schenck