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robbinhood69 t1_j261j00 wrote

Reply to comment by 0dteSPYFDs in Progressive: The Valuation Enigma by 2ndSifter

why bother wrapping those instruments in a product at all when these insurers hold those instruments by themselves ?

there's no good reason to wrap the instrument and have someone else be responsible for it i mean wtf

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0dteSPYFDs t1_j262kvg wrote

To ensure adherence to the plan and have a 3rd party guaranteeing the first party’s assets, or lack thereof. Again, it’s the same concepts of compliance and risk management. This is done to avoid contagions like the 2008 GFC.

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