LNC
Lincoln National Corp.
stock NYSE

Apologies, misspoke here on one point, the capital requirement is for equity rather than debt, and the feeder fund helps transform an equity investment into a fixed income investment to lower the capital requirement

Documentation for the NAIC RBC: [https://content.naic.org/sites/default/files/inline-files/committees\_e\_capad\_investment\_rbc\_wg\_exposure\_academy\_bond\_factors\_report.pdf](https://content.naic.org/sites/default/files/inline-files/committees_e_capad_investment_rbc_wg_exposure_academy_bond_factors_report.pdf)
idk if that's the most up to date, but on page 8-9 it talks about common stock having a bond factor of 30% as well as any distressed bonds in NAIC-6

For what a rated note feeder is, i just googled but here are two sources that seemed like reasonable explanations:
[https://www.valuationresearch.com/insights/mastering-private-equity-rated-note-feeder-strategies/](https://www.valuationresearch.com/insights/mastering-private-equity-rated-note-feeder-strategies/)
[https://www.suntera.com/our-expert-commentary/introduction-to-rated-note-feeder-funds](https://www.suntera.com/our-expert-commentary/introduction-to-rated-note-feeder-funds)
The source for usage of rated note feeders to transform the risk and thereby lower the capital requirement: [https://www.ft.com/content/908273c0-5eea-435d-a178-5449a95b8e10?syn-25a6b1a6=1](https://www.ft.com/content/908273c0-5eea-435d-a178-5449a95b8e10?syn-25a6b1a6=1)

Also I am parroting a couple of ideas I saw in this video: [https://www.youtube.com/watch?v=8Qc5U00IiAk](https://www.youtube.com/watch?v=8Qc5U00IiAk)
The question then becomes, are the losses that they write down going to be larger than expected because a larger than expected portion of the fixed income balance sheet is actually equivalent to bonds in distress
I definitely do not work in the industry though, so if you told me I had no idea what I was talking about, I'd probably believe you
I also have no position but maybe i will buy puts if i get really bored on LNC or MET or PRU

Apologies, misspoke here on one point, the capital requirement is for equity rather than debt, and the feeder fund helps transform an equity investment into a fixed income investment to lower the capital requirement

Documentation for the NAIC RBC: [https://content.naic.org/sites/default/files/inline-files/committees\_e\_capad\_investment\_rbc\_wg\_exposure\_academy\_bond\_factors\_report.pdf](https://content.naic.org/sites/default/files/inline-files/committees_e_capad_investment_rbc_wg_exposure_academy_bond_factors_report.pdf)
idk if that's the most up to date, but on page 8-9 it talks about common stock having a bond factor of 30% as well as any distressed bonds in NAIC-6

For what a rated note feeder is, i just googled but here are two sources that seemed like reasonable explanations:
[https://www.valuationresearch.com/insights/mastering-private-equity-rated-note-feeder-strategies/](https://www.valuationresearch.com/insights/mastering-private-equity-rated-note-feeder-strategies/)
[https://www.suntera.com/our-expert-commentary/introduction-to-rated-note-feeder-funds](https://www.suntera.com/our-expert-commentary/introduction-to-rated-note-feeder-funds)
The source for usage of rated note feeders to transform the risk and thereby lower the capital requirement: [https://www.ft.com/content/908273c0-5eea-435d-a178-5449a95b8e10?syn-25a6b1a6=1](https://www.ft.com/content/908273c0-5eea-435d-a178-5449a95b8e10?syn-25a6b1a6=1)

Also I am parroting a couple of ideas I saw in this video: [https://www.youtube.com/watch?v=8Qc5U00IiAk](https://www.youtube.com/watch?v=8Qc5U00IiAk)
The question then becomes, are the losses that they write down going to be larger than expected because a larger than expected portion of the fixed income balance sheet is actually equivalent to bonds in distress
I definitely do not work in the industry though, so if you told me I had no idea what I was talking about, I'd probably believe you
I also have no position but maybe i will buy puts if i get really bored on LNC or MET or PRU