During the GSE Credit Risk Transfer Conference earlier this year, Jeff Krohn, Guy Carpenter’s Managing Director, Mortgage and Structured Credit Segment Leader, joined Rob Schaeffer, Vice President, Credit Enhancement Strategy & Management for Fannie Mae, one of the major government sponsored enterprises (GSE) in the mortgage space.
Rob values the impact reinsurance has in the credit risk transfer (CRT) environment, providing needed flexibility when it comes to raising needed capital.
“It’s an important vehicle to manage capital requirements under our regulatory capital rules,” Rob said. “It’s helped us develop a more robust CRT program.”
Jeff indicated how reinsurance helps provide an additional menu of options for clients in the capital markets.
“Reinsurers can sometimes be more responsive to tailor coverage that doesn’t otherwise happen in the capital markets,” Jeff explained. “They need a lot of scale and homogeneity between one transaction and the next.”