In the case of an analysis of the securitization of a financing contract or a secured investment contractual transaction, the following factors are relevant to determining the applicability of the New York Insurance Act. First, buyers of securities issued by the SPV cannot have a contract with the insurance company that issues the financing contract. Second, there must be no guarantee for SPV securities by the insurer or any other entity, i.e. the SPV must be the sole source of payment for the securities. Finally, SPV securities should not be presented to potential investors as some kind of insurance contract or product. This note describes new data on secured securities financing contracts (FABS) provided under the Enhanced Financial Accounts (EFA) initiative. As noted in Holmquist and Perozek (2016), the U.S. financial accounts report the total amount of outstanding FABS on a quarterly basis. This EFA project expands financial account data by providing daily data for different types of FABS, which vary depending on maturity and on-board optionality.

The more detailed data presented in this EFA project give a clearer picture of the evolution of this important financial market, including the race for a segment of the fabs market from the summer of 2007 (Foley-Fisher, Narajabad and Verani 2015). The project therefore supports the objectives of the EFA initiative – described in Gallin and Smith (2014) – to provide a more detailed and frequent picture of financial intermediation in the United States. What are securities secured by financing contract? A financing agreement is a deposit contract that is sold by life insurance companies and generally pays a guaranteed return over a period of time. As the name suggests, these insurance contracts look like deposits, as they carry no risk of mortality or morbidity. Insurers make money by creating these contracts and investing the product in relatively more profitable assets. Financing agreements have long been awarded directly to municipalities and institutional investors, but in recent years insurance companies have begun to create special purpose entities (SPEs) to conclude financing agreements and issue financing contracts (FABS). Secured by a super senior right in the insurer`s balance sheet, FABS attracts a number of potential investors and allows insurers to borrow at a lower cost than other forms of debt.1 4. In particular, we use rating agency announcements to identify SPs that obtain funding agreements. We then collect data from Bloomberg on all securities issued by each SPECIAL purpose vehicle and supported by the financing agreement.

Bloomberg generally covers all medium-term and revolving securities. We also collect data on the fabcp issue from reports from credit rating agencies that are available quarterly. We aggregate this data down to the level of the insurer`s parent company in order to obtain a quarterly set of FABS issues and outstandings. Going back to the text, the products of the financing agreement resemble capital guarantee funds or guaranteed investment contracts, as both instruments also promise a fixed return with little or no risk to capital. In other words, guarantee funds can generally be invested without risk of loss and are generally considered risk-free. However, like certificates of deposit or pensions, financing agreements generally offer only modest returns. 2. Where the securities are offered or purchased by investors in New York, neither the SPV nor the insurers shall be considered financing arrangements, insurance or pension contracts, or, on the other hand, as insurance business in New York as a result of such an offer or sale of the securities; A financing contract product requires a lump sum investment paid to the seller, which then offers the buyer a fixed return over a period of time, often with the LIBOR-based return, which has become the world`s most popular benchmark for short-term interest rates. .

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