Headlines of Interest for Investors in Preferred Stock and Baby Bonds

2 thoughts on “Headlines of Interest for Investors in Preferred Stock and Baby Bonds”

1. MetLife… low private equity returns contributed to earnings miss!! lol Here we go on that can of worms, ‘private equity’…’private credit’.. from Bloomberg.. black holes permeating our ‘great institutions’.. omg. Bea

   MetLife Inc.tumbled in extended trading Wednesday after the insurer reported third-quarter private equity returns that weighed on variable investment income.

   Shares of the company dropped 6.2% to $78 at 5:35 p.m. in New York.

   Lower private equity returns have weighed on MetLife’s variable investment income, which totaled $162 million on a pretax basis for the three months ended Sept. 30. The insurer had previously said it expected gains of about $375 million per quarter.

   Adjusted earnings fell 8% to $1.38 billion, or $1.95 a share, New York-based MetLife said in a statement. That missed the $2.17 average estimate”

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   1. Where are the state and Federal regulators that are supposed to approve these takeovers? Underfunded state programs that insurers are supposed to contribute to in case of failure? Oh wait, It’s the fox guarding the hen house. State agencies turn over funds to these companies for investment to pay out future employee retirements. P.E. has the best of both worlds. States have to step in and add additional funding for backstop if investments don’t earn enough to pay future obligations. Will they also have to step in and cover losses if these insurance companies owned by P.E fail?
      On top of this states are getting into the insurance business as insurers pull out of doing business in certain states and the states know what they are doing running this business and are keeping these programs fully funded right?
      At what point does something go poof and collapse?
      I know nothing, but this sounds like a good plot for a thriller novel.

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