
This excerpt taken from the PFG 10Q filed Nov 5, 2008. Use of
Derivatives to Manage Interest Rate Risk. We use various
derivative financial instruments to manage our exposure to fluctuations in
interest rates, including interest rate swaps, swaptions, futures, treasury lock
agreements and options. We use interest rate swaps and futures contracts to
hedge changes in interest rates subsequent to the issuance of an insurance
liability, such as a guaranteed investment contract, but prior to the purchase
of a supporting asset, or during periods of holding assets in anticipation of
near term liability sales. We use interest rate swaps primarily to more closely
match the interest rate characteristics of assets and liabilities. They can be
used to change the sensitivity to the interest rate of specific assets and
liabilities as well as an entire portfolio. We have also used these instruments
to hedge the interest rate exposure in our CMBS
89
operations within Principal Commercial Funding II, an equity method investment. Occasionally, we will sell a callable investmenttype agreement and will use written interest rate swaptions to transform the callable liability into a fixed term liability.
This excerpt taken from the PFG 10Q filed Aug 6, 2008. Use of
Derivatives to Manage Interest Rate Risk. We use various derivative financial
instruments to manage our exposure to fluctuations in interest rates, including
interest rate swaps, swaptions, futures, treasury lock agreements and options.
We use interest rate swaps and futures contracts to hedge changes in interest
rates subsequent to the issuance of an insurance liability, such as a
guaranteed investment contract, but prior to the purchase of a supporting
asset, or during periods of holding assets in anticipation of near term
liability sales. We use interest rate swaps primarily to more closely match the
interest rate characteristics of assets and liabilities. They can be used to
change the sensitivity to the interest rate of specific assets and liabilities
as well as an entire portfolio. We have also used these instruments to hedge
the interest rate exposure in our CMBS operations within PCF II, an equity
method investment. Occasionally, we will sell a callable investmenttype
agreement and will use written interest rate swaptions to transform the
callable liability into a fixed term liability.
This excerpt taken from the PFG 10Q filed May 7, 2008. Use of Derivatives to Manage Interest Rate Risk. We use
various derivative financial instruments to manage our exposure to fluctuations
in interest rates, including interest rate swaps, swaptions, futures, treasury
lock agreements and options. We use interest rate swaps and futures contracts
to hedge changes in interest rates subsequent to the issuance of an insurance
liability, such as a guaranteed investment contract, but prior to the purchase
of a supporting asset, or during periods of holding assets in anticipation of
near term liability sales. We use interest rate swaps primarily to more closely
match the interest rate characteristics of assets and liabilities. They can be
used to change the sensitivity to the interest rate of specific assets and
liabilities as well as an entire portfolio. We have also used these instruments
to hedge the interest rate exposure in our CMBS operations. Occasionally, we
will sell a callable investmenttype agreement and will use written interest
rate swaptions to transform the callable liability into a fixed term liability.
This excerpt taken from the PFG 10Q filed Oct 31, 2007. Use of Derivatives to Manage Interest Rate Risk. We
use various derivative financial instruments to manage our exposure to
fluctuations in interest rates, including interest rate swaps, swaptions,
futures, and options. We use interest rate swaps and futures contracts to hedge
changes in interest rates subsequent to the issuance of an insurance liability,
such as a guaranteed investment contract, but prior to the purchase of a
supporting asset, or during periods of holding assets in anticipation of near
term liability sales. We use interest rate swaps primarily to more closely
match the interest rate characteristics of assets and liabilities. They can be
used to change the sensitivity to the interest rate of specific assets and
liabilities as well as an entire portfolio. We also use these instruments to
hedge the interest rate exposure in our commercial mortgagebacked
securitization operations. Occasionally, we will sell a callable
investmenttype agreement and will use written interest rate swaptions to transform the
callable liability into a fixed term liability.
This excerpt taken from the PFG 10Q filed Aug 1, 2007. Use of Derivatives to Manage Interest Rate Risk. We use
various derivative financial instruments to manage our exposure to fluctuations
in interest rates, including interest rate swaps, swaptions, futures, and options. We use interest rate swaps and
futures contracts to hedge changes in interest rates subsequent to the issuance
of an insurance liability, such as a guaranteed investment contract, but prior
to the purchase of a supporting asset, or during periods of holding assets in
anticipation of near term liability sales. We use interest rate swaps primarily
to more closely match the interest rate characteristics of assets and
liabilities. They can be used to change the sensitivity to the interest rate of
specific assets and liabilities as well as an entire portfolio. We also use
these instruments to hedge the interest rate exposure in our commercial
mortgagebacked securitization operations. Occasionally, we will sell a
callable investmenttype agreement and will use written interest rate swaptions
to transform the callable liability into a fixed term liability.
This excerpt taken from the PFG 10Q filed May 2, 2007. Use of Derivatives to Manage Interest
Rate Risk. We use various derivative financial
instruments to manage our exposure to fluctuations in interest rates, including
interest rate swaps, swaptions, futures,
and options. We use interest rate swaps and futures contracts to hedge
changes in interest rates subsequent to the issuance of an insurance liability,
such as a guaranteed investment contract, but prior to the purchase of a
supporting asset, or during periods of holding assets in anticipation of near
term liability sales. We use interest rate swaps primarily to more closely
match the interest rate characteristics of assets
65 and liabilities. They can be used to change the sensitivity to the interest rate of specific assets and liabilities as well as an entire portfolio. We also use these instruments to hedge the interest rate exposure in our commercial mortgagebacked securitization operations. Occasionally, we will sell a callable investmenttype agreement and will use written interest rate swaptions to transform the callable liability into a fixed term liability. This excerpt taken from the PFG 10Q filed Nov 1, 2006. Use of
Derivatives to Manage Interest Rate Risk. We use various derivative financial instruments
to manage our exposure to fluctuations in interest rates, including interest
rate swaps, swaptions, futures, total return swaps, mortgagebacked
forwards and options. We use interest rate swaps, futures contracts and
mortgagebacked forwards to hedge changes in interest rates subsequent to
the issuance of an insurance liability, such as a guaranteed investment
contract, but prior to the purchase of a supporting asset, or during periods of
holding assets in anticipation of near term liability sales. We use interest
rate swaps primarily to more closely match the interest rate characteristics of
assets and liabilities. They can be used to change the sensitivity to the
interest rate of specific assets and liabilities as well as an entire
portfolio. We also use these instruments to hedge the interest rate exposure in
our commercial mortgagebacked securitization operations. Occasionally,
we will sell a callable investmenttype agreement and will use written interest
rate swaptions to transform the callable liability into a fixed term liability.
This excerpt taken from the PFG 10Q filed Aug 2, 2006. Use of
Derivatives to Manage Interest Rate Risk. We use
various derivative financial instruments to manage our exposure to fluctuations
in interest rates, including interest rate swaps, swaptions, futures, total
return swaps, mortgagebacked forwards and options. We use interest rate swaps,
futures contracts and mortgagebacked forwards to hedge changes in interest
rates subsequent to the issuance of an insurance liability, such as a
guaranteed investment contract, but prior to the purchase of a supporting
asset, or during periods of holding assets in anticipation of near term
liability sales. We use interest rate swaps primarily to more closely match the
interest rate characteristics of assets and liabilities. They can be used to
change the sensitivity to the interest rate of specific assets and liabilities
as well as an entire portfolio. We also use these instruments to hedge the
interest rate exposure in our commercial mortgagebacked securitization
operations. Occasionally, we will sell a callable investmenttype agreement and
will use written interest rate swaptions to transform the callable liability
into a fixed term liability.
83
This excerpt taken from the PFG 10Q filed May 4, 2006. Use of Derivatives to Manage Interest Rate Risk. We use
various derivative financial instruments to manage our exposure to fluctuations
in interest rates, including interest rate swaps, swaptions, futures, total return
swaps, mortgagebacked forwards and options. We use interest rate swaps,
futures contracts and mortgagebacked forwards to hedge changes in
interest rates subsequent to the issuance of an insurance liability, such as a
guaranteed investment contract, but prior to the purchase of a supporting
asset, or during periods of holding assets in anticipation of near term
liability sales. We use interest rate swaps primarily to more closely match the
interest rate characteristics of assets and liabilities. They can be used to
change the sensitivity to the interest rate of specific assets and liabilities
as well as an entire portfolio. We also use these instruments to hedge the
interest rate exposure in our commercial mortgagebacked securitization
operations. Occasionally, we will sell a callable investmenttype agreement and
will use written interest rate swaptions to transform the callable liability
into a fixed term liability.
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