American International Group Inc. hunt to boost investment income may have steered the bailed-out insurer toward junk bonds and securities backed by home loans. Chief Executive Officer Robert Benmosche is working to lift annual returns on AIG’s portfolio by as much as $700 million as he seeks capital in a public share offering after posting insurance underwriting losses. Benmosche is getting yields of 8 percent to 9 percent on about $5 billion invested this year after the Federal Reserve rejected AIG’s bid to repurchase mortgage bonds turned over in its bailout, he said last week.
Benmosche 9% yield hunt may mean AIG got junk
Most Popular Articles
Latest Articles
Pennymac posts first-quarter profit of $39M
Loan production income shrank in the first quarter, but the company’s servicing business continues to grow
-
DOJ charges one of America’s top LOs in alleged mortgage fraud scheme
-
Top Producer Review: Features, pricing & alternatives
-
A&D Mortgage names new servicing manager
-
HUD aims to help protect communities from extreme heat
-
Freedom Mortgage founder addresses ’extraordinary’ credit profiles, profitability and products