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  "documentTitle": "AerCap Holdings (AER)",
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  "authorName": "David Einhorn",
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  "presentationDate": "2015-04-07 00:00:00",
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  "notes": "The slide discusses the unintended consequences of Solvency II regulations regarding negative bond yields.",
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      "text": "It appears that Solvency II did not anticipate negative bond yields, as holding debt with locked in negative yields can’t possibly be safer than selling and holding cash.",
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      "text": "Solvency II capital charge: 39.0%",
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      "text": "So, the designers of Solvency II gave government bonds that reduce duration risk a lower capital charge than cash. The first column is the stand-alone market risk charge for certain assets. The second column considers other factors including diversification and duration matching. Government debt actually has a negative capital charge. It appears that Solvency II did not anticipate negative bond yields, as holding debt with locked in negative yields can't possibly be safer than selling and holding cash. Under the new rules, selling the bonds to hold cash would create a capital charge. That is like using bubble wrap filled with a corrosive to help protect a package.",
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      "text": "Source: https://www.ageas.com/sites/default/files/Regulatory%20Impact%20on%20Banks%20and%20Insurers%20Investments%20final.pdf",
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