V
Viki2010
Member
Hi, I've seen in a few places in various solutions "Alternative Investments" coming up....for example infrastructure.
1. Is that a generally safe asset class?
2. What type of products is it suitable for backing up?
There seems to be a trade of between an interest rate risk and spread risk. For example, we can make annuity products more profitable by investing in corporate bonds or alternative investments, helping the capital position, solvency of the company but at the same time we are increasing a spread risk as corporate bonds have a higher spread risk than government bonds. I am not sure how the alternative investments stand in terms of the spread risk.
1. Is that a generally safe asset class?
2. What type of products is it suitable for backing up?
There seems to be a trade of between an interest rate risk and spread risk. For example, we can make annuity products more profitable by investing in corporate bonds or alternative investments, helping the capital position, solvency of the company but at the same time we are increasing a spread risk as corporate bonds have a higher spread risk than government bonds. I am not sure how the alternative investments stand in terms of the spread risk.