Monday, May 10, 2010

Hartford "takes profits" on CMBS holdings...

Hartford, well known within the CMBS for chasing yield to the bottom of the barrel hoovering up any "AA" or "AAA" rated small balance deals (LASL, HCC, etc.), mezz loan deals (MEZZ), and carefully selecting only the worst AJ bonds available at the peak of the market, began to unload assets last quarter according to Bloomberg today.

To their credit, now does seem like a good time to sell, but I doubt most of those are profitable overall.

McGee cut Hartford’s investments in commercial mortgage-backed securities to 11.5 percent of fixed-maturity assets as of March 31 from 13.1 percent six months before.

CMBS makes up an average of 6% of your typical insurance company portfolio.

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