Research & Insights
The Collateral Damage of Today’s Monetary Policies: Funding Long-Term Liabilities
Craig Turnbull
The actions of the world’s major central banks over the last three years have been focused on short-term economic stimulus and the support of financial institutions with short-term liability funding structures.
The economic balance sheets of life and pensions sectors have suffered major collateral damage as a consequence of aggressive monetary policies that has driven long-term interest rates to once-in-a-lifetime lows.
