Aflac has about $1 billion in Greek bank bonds and $750 million issued by Portuguese lenders, Chief Investment Officer Jerry Jeffery said in a conference call today. The insurer also holds about $285 million in Greek sovereign bonds, Jeffery said. Greece is waiting on word of a 45 billion-euro ($59 billion) rescue package from the European Union and the International Monetary Fund after the nation’s credit rating was cut to junk by Standard & Poor’s yesterday. The ratings firm lowered its rating on Greece by three levels to BB+ from BBB+ and warned that investors could recover as little as 30 percent of their initial outlay if it restructures its debt.Portugal isn't quite "there yet," but a look at credit protection costs doesn't inspire confidence...
(From CMA Datavision)
You name a problem country, and Aflac is ALL OVER IT. You can download the entire fixed income portfolio here, but I put together some of the worst offenders in their portfolio below. Oh and just to add insult to injury, they face a major write-down on their investment in IKB, the yield-hungry bank on the "idiot-side" of the transaction that landed Goldman Sachs in hot water:
Copyright 2010 TheAlphaNinja