FIA Market Briefing

What this means for FIA rates: The 10-year Treasury held flat at 4.35% this week, offering no additional bond income buffer. With VIX climbing to 27.6, rising option costs are the primary concern for FIA crediting rates right now. The yield curve is normal (+74 bps), a healthy sign for insurer long-term portfolio returns.

Watch for rate pressure ahead. VIX is climbing while yields offer no offset — rising options costs without additional bond income to fund them. The 10-year moved from 4.33% to 4.35% over the week, and VIX went from 25.33 to 27.57. The yield curve is positive (74bps spread) — a healthy sign for insurer portfolio returns. If you have pending apps, pushing them through sooner rather than later could be smart before any rate adjustments.

• →Volatility is elevated — emphasize the downside protection and guaranteed floor that FIAs provide.
• →Equities are flat — a natural moment to discuss how FIAs offer a more predictable path for retirement income vs. direct market exposure.
• →VIX at 27.6 signals significant market anxiety. Clients nearing retirement should hear how FIAs eliminate the sequence-of-returns risk that can devastate traditional portfolios.