firms diversifying out of equities to meet solvency requirements may push index even lower
Life companies diversifying out of equities to meet solvency and pension funding requirements could exert further downward pressure on the freefalling FTSE, according to Steven Andrew, an economist at Isis Asset Management. With the current geopolitical uncertainty seriously diminishing the number of potential buyers of equities, Andrew said, widespread institutional equity selling in direct response to poor markets could create a vicious circle by forcing the FTSE down even further. 'While life offices are attempting to improve their balance sheets by divesting out of equities, they ar...
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