Regulators call for insurers to set aside more capital to back their non-agency MBS holdings,...

|By:, SA News Editor

Regulators call for insurers to set aside more capital to back their non-agency MBS holdings, raising the level to 3.2% of carrying value from 2.7%. Insurers naturally disagree, arguing regulators are failing to account for the improving housing market. Backing up the new rules is a report from Pimco, whose Bill Gross might be happy to buy any of the MBS the insurers might decide to sell!