Annuity News

A recent article in the Wall Street Journal discusses the damage that the financial crisis has rendered to the theoretical foundations of modern finance. In particular, modern portfolio theory has come under heavy scrutiny over the past couple of years as a result of its non-relevance as a risk management tool during the financial crisis. This is a highly recommended article that effectively contrasts modern portfolio theory and alternative foundations such as asset liability management and...

The small group health insurance market in Massachusetts has temporarily shut down. Governor Deval Patrick rejected 90 percent of the rate increases that had been sought by the state's health insurers. In response, the health insurers have stopped selling any new policies.

Goldman Sachs seems to have faired extraordinarily well through its proprietary trading activities over the past year as the S&P index has risen 73 percent. Meanwhile, a Bloomberg National Poll conducted in March indicates that only three in ten respondents (that's right, 30 percent) say the value of their portolio has risen at all during the past year.

Bill Gross is the manager of the world's largest bond fund at PIMCO. Gross believes that "bonds have seen their best days" and that both inflation and real interest rates are headed higher.