The current low-rate environment, he adds, is the perfect time.
The vehicle is being promoted to investors looking for a high yield in the current low-rate environment.
This basic financial principle, when applied to lump-sum calculations, means that employees approaching retirement in the current low-rate environment are entitled to unusually large upfront payouts.
"A low-rate environment poses considerable challenges to all lenders, and we must respond to what is happening in the economy and the market.
But it should be clear to us that Fed hawkishness is among the chief culprits in pushing the economy toward a prolonged low-rate environment.
Many life insurers are having trouble because they normally buy bonds to make good on annuities they sold in the past, and they cannot get the yields they need in the current low-rate environment.
Though some advisers are urging caution, New Jersey and other states have continued to issue new debt at reasonable rates as investors clamor for high-grade securities in a low-rate environment.
"Cash is a nonearning asset, especially in this low-rate environment," says Jostrand.
It's unlikely that the stock market can keep up a 9%-a-year average return in a low-rate environment.
Goldfarb: Given the low-rate environment, REITs should continue to have some support but clearly the market overall is lacking a positive catalyst to get things going.
The low-rate environment has been caused in part by consistently low economic growth, said Mr Haldane, speaking at a business lunch in Rutland.
