Top
Funding Agreement Backed Note (FABN) issuance has accelerated sharply in recent years, prompting the NAIC to propose enhanced disclosure requirements. This insight takes a closer look at FABN issuance, comparing the financial profiles of FABN issuers with the broader life insurance industry to assess whether their use has resulted in meaningfully higher risk. We also flag where recent regulatory and rating agency changes may be creating new portfolio opportunities within the CLO space.
The Authors
