Jackson Financial Inc Bonds

Jackson Financial Inc

Credit, Finance/Real Estate


Publicly traded companies mentioned herein: Brighthouse Financial Inc (BHF), Corebridge Financial Inc (CRBG), Jackson Financial Inc (JXN), Lincoln National Corp (LNC), MetLife Inc (MET), Prudential Financial Inc (PRU), Unum Group (UNM)

Highlights

Following the regional bank blowups earlier this year, the presenter became interested in the funding structures of other financial institutions and was struck by lack of movement in the credit securities of the life insurance companies. Life insurance companies are often falsely viewed as bulletproof since their liabilities can’t be collapsed by the liability holders, unlike bank liability holders who can withdraw their deposits. Given the sticky nature of liabilities at life insurance companies, he decided to analyze both sides of the balance sheets of life insurance businesses trading at tight spreads. The company that stuck out as the worst quality was Jackson Financial Inc (JXN), and he is therefore short JXN bonds in the belly of the curve (i.e., 2028-2030 range of maturities). Other companies worth highlighting (in order of worst quality to best quality) include Lincoln National Corp (LNC), Unum Group (UNM), Brighthouse Financial Inc (BHF), Corebridge Financial Inc (CRBG), Prudential Financial Inc (PRU), and MetLife Inc (MET). 

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Idea Discussion

Commentor 1 - 2 weeks ago

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