Systematic Valuation Calculation for Fixed Income ETFs

Fixed income ETFs have provided investors of all profiles, from large institutions to retail investors, an alternative tool to access the cash bond market. For insurance companies in particular, the use of fixed income ETFs has been steadily growing. This increased use has been driven by recent statutory guidance relating to how insurers account for National Association of Insurance Commissioners (NAIC) designated fixed income ETFs. This new methodology is known as Systematic Value.