Broken Moats on X
$MFC the spotlight has shifted off private credit but the issues have not gone away. MFC is in my opinion one of the more overlooked violators stuffing their life insurance investments with outsized exposure to private credit and cre. Just look under the hood of their earnings tonight. "๐๐ก๐๐ง ๐ฐ๐ข๐ฅ๐ฅ ๐๐๐ง๐ฎ๐ฅ๐ข๐๐ ๐ฅ๐จ๐ฐ๐๐ซ ๐ข๐ญ๐ฌ ๐๐ฅ๐ญ๐๐ซ๐ง๐๐ญ๐ข๐ฏ๐ ๐๐ฌ๐ฌ๐๐ญ ๐ซ๐๐ญ๐ฎ๐ซ๐ง ๐๐ฌ๐ฌ๐ฎ๐ฆ๐ฉ๐ญ๐ข๐จ๐ง๐ฌ? Alternative long-duration assets missed expected returns by $153 million post-tax, marking six straight negative quarters and $1.35 billion of cumulative shortfalls by our math. Keeping unchanged return assumptions turns recurring investment shortfalls into excluded below-the-line charges every quarter."
