Is insurance ABF underwriting standards lower?
Was talking to an acquaintance who works at an insurance company’s fixed income team. He’s looking at an ABS deal for a corporate issuer, but doesn’t even know the basics. Ie this company had some balance sheet issues last year but he had no idea it happened even though he’s going to invest in its ABF. I know these are in SPV and asset quality matters more, but some of the things he has no idea about sounds like 101…. Do people in insurance companies / ABF markets just have lower underwriting standards?
