FABN - Funding Agreement-Backed Note

  • FABCP -  funding agreement–backed commercial paper 
  • The use of institutional funding agreements by U.S. life insurers emerged as a response to long-run macroeconomic and regulatory changes that affected the industry. (p13)

2015 - FRB - Self-Fulfilling Runs: Evidence from the US Life Insurance Industry - 52p

  • 2008 0807 - Moody's - Global Credit Research Rating Action - Rating Action: American International Group, Inc. - Moody's reiterates negative outlook on AIG; US life ops negative
    • AIG SunAmerica funding agreement-backed note programs -- AIG SunAmerica Global Financing Trusts, ASIF I & II, ASIF III (Jersey) Limited, ASIF Global Financing Trusts -- senior secured debt at Aa2. (p329p)

FCIC - Moodys Follow Up Exhibits - Rating Committee Memos for AIG - 784p 

  • 2.2.2 Funding Agreements and Funding Agreement–Backed Securities
    • MetLife’s funding agreements and related products, its FABNs and funding agreement–backed commercial paper (FABCP), constitute a significant portion of the company’s capital markets financing activities and contribute to the company’s operating leverage.30
    • MetLife issued approximately 75 percent of all FABNs issued by U.S. life insurers in the first six months of 2013.31
    • These funding agreement–related instruments could contribute to or exacerbate the transmission of MetLife’s material financial distress through the exposure and asset liquidation transmission channels. In general, funding agreements are investment products issued out of the general account of an insurer into the institutional market.