08-10-2011, 02:00 PM
You're right. I'm wrong. Damn... I thought it was one of those agencies that mostly sells to Federal Employees.
OK, a bit more research and the reason is that the TEN insurance companies downgraded have a large proportion of their holdings in US Debt.
http://www.insurancejournal.com/news/nat...209893.htm
"The 10 affected insurance groups operate in the U.S. and generally have significant holdings of U.S. Treasury and agency securities. For the insurers with the most exposure, these investments constituted as much as 200% of total adjusted capital at year-end 2010, according to S&P."
So yeah, still kind of logical.
Of course by extension banks, etc..... The dominos are still falling and clicking together.
OK, a bit more research and the reason is that the TEN insurance companies downgraded have a large proportion of their holdings in US Debt.
http://www.insurancejournal.com/news/nat...209893.htm
"The 10 affected insurance groups operate in the U.S. and generally have significant holdings of U.S. Treasury and agency securities. For the insurers with the most exposure, these investments constituted as much as 200% of total adjusted capital at year-end 2010, according to S&P."
So yeah, still kind of logical.
Of course by extension banks, etc..... The dominos are still falling and clicking together.