The FABN Opportunity: A Look at Issuer Fundamentals and Market Appeal

FABN issuance has surged, prompting the NAIC to propose stricter disclosure rules. The research suggests that while FABNs are growing, their issuers don't inherently pose significantly higher risk than the broader life insurance sector.

This trend warrants attention for portfolio managers. Changes from regulators and rating agencies might be creating new opportunities within the CLO market. Investors should monitor these developments closely for potential tactical shifts.