Working paper · Financial intermediation · Public finance
Reaching for Guaranteed Yield
Liability-Side Deregulation and Quasi-Sovereign Debt
What happens to quasi-sovereign credit markets when deregulation changes the funding pressure of institutional investors?
This paper studies how universal-life insurance deregulation changes insurers’ demand for local-government financing vehicle bonds, linking liability-side pressure to the pricing and market access of quasi-sovereign debt.
Research question
Funding pressure meets public debt.
The paper connects a change in insurer liabilities to asset demand in a market where yield, perceived backing, and institutional risk-taking interact.
The broader contribution is to trace how regulation on one side of an intermediary’s balance sheet can travel into the pricing and allocation of public-sector-linked credit.
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