Affiliated bonds
Would affiliated bonds be part of R0, R1, or R2?
The source text specifies "The R0 charge considers the risks associated with investments in affiliated entities" - would this include affiliated bonds? Also the summary table for R1 and R2 specifies "bonds" for the R1 basic charge and not just unaffiliated bonds and then R2 specifies "affiliated investments". So which one would affiliated bonds be attributed to? TIA
Comments
On page 244, Odomirok says:
"R0 contains the risk charges associated with affiliated insurers subject to RBC (whether
property/casualty, life or health), along with alien insurance affiliates. All other affiliates are subject to R2 charges."
I don't find any reference to "affiliated bonds" in the text. It is safe to assume this statement applies to all investments in affiliates, be it bonds, stocks or other.