What if US life insurers mark down office and CMBS holdings under tighter NAIC rules?
US life insurers mark down sizable office and CMBS holdings as NAIC scrutiny of CRE exposure tightens RBC, an FSOC-flagged channel.
how we built this number — every step
The class rate is measured from our dated, sourced event library (decade-normalized Poisson — the full table is public at base_rates.json). The variant’s share within its class is the analyst’s editorial call, published so you can audit it. A wider range means thinner precedent. Full recipe: methodology · scored at Reality Check.
The butterfly cascade
How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.
Resolution timeline — how this probability is moving
Our model's odds (gold) over time vs the crowd's (Polymarket, blue), from the past toward the 1–3 years horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. The gold path is an illustrative reconstruction anchored to today's estimate — real dated events, not a live re-estimate history.
What it would mean
If this plays out, it is a risk-off shock. US life insurers mark down sizable office and CMBS holdings as NAIC scrutiny of CRE exposure tightens RBC, an FSOC-flagged channel. The trigger decomposes into signed root‑shocks — Credit spreads ▲ · Financial conditions ▲ · Recession signal ▲ · Risk appetite ▼ — which propagate through our causal graph to the markets below.
If it happens — the markets it would move
Biggest moves first. Projected moves are cascade-model priors; hist A–B% = what comparable past events actually did (measured abnormal returns), and model prior · unmeasured marks markets with no analogue backing yet. Tap any market for its price history.
| Market | Class | Projected move | |
|---|---|---|---|
| 1 | MicroStrategy MSTRon Hyperliquid 📈 chart | Equity | ▼ -1.5% hist -5.61–+1.05% · other way +26.61% (n=12) |
| 2 | Solana SOLon Hyperliquid 📈 chart | Crypto | ▼ -1.2% hist -18.6–+8.81% · other way -1.04% (n=11) |
| 3 | High-yield credit HYG 📈 chart | Rate | ▼ -0.9% hist -1.06–-0.08% · other way -0.16% (n=12) |
| 4 | Ether ETHon Hyperliquid 📈 chart | Crypto | ▼ -0.9% hist -7.13–+5.08% · other way +4.87% (n=11) |
| 5 | Hyperliquid (HYPE) HYPEon Hyperliquid | Crypto | ▼ -0.9% model prior · unmeasured |
| 6 | Bitcoin BTCon Hyperliquid 📈 chart | Crypto | ▼ -0.9% hist -6.78–+4.78% · other way +6.05% (n=11) |
| 7 | Volatility (VIX) VIXon Hyperliquid 📈 chart | Vol | ▲ +0.9% hist -1.52–+4.23% · other way -3.49% (n=12) |
| 8 | Nasdaq 100 NDXon Hyperliquid 📈 chart | Index | ▼ -0.8% hist -0.79–-0.18% · other way +0.35% (n=12) |
| 9 | Financials XLF 📈 chart | Equity | ▼ -0.7% hist -1.25–+0.09% · other way -0.09% (n=12) |
| 10 | S&P 500 SPXon Hyperliquid 📈 chart | Index | ▼ -0.6% hist -1.17–+0.18% · other way -0.44% (n=12) |
| 11 | Coinbase COINon Hyperliquid 📈 chart | Equity | ▼ -0.5% hist -3.72–+2.68% · other way +21.75% (n=11) |
| 12 | JPMorgan JPM 📈 chart | Equity | ▼ -0.5% hist -0.69–-0.01% · other way +1.78% (n=12) |
| 13 | Tech sector XLK 📈 chart | Equity | ▼ -0.5% hist -0.5–+0.42% · other way +0.36% (n=12) |
| 14 | Semiconductors SMHon Hyperliquid 📈 chart | Equity | ▼ -0.3% hist -0.71–+2.71% · other way +2.88% (n=12) |
Probable recommendation
Historical precedent — what analogous events actually did
Across 26 analogous events (overlap‑weighted), as abnormal returns — market beta stripped, so it's the event's own effect, not the market backdrop. Shown at 20 days (persistent) and 5 days (immediate); ↺ fades = the two horizons disagree. Confidence = consistency × sample × significance.
| Asset | History says | Abnormal (20d · 5d) | Hit | n | Confidence | vs cascade |
|---|---|---|---|---|---|---|
| SOL SOL | SHORT | -17.7% · 5d -13.9% | 100% | 3 | 0.59 | ✓ matches cascade |
| High-yield credit HYG | SHORT | -0.6% · 5d -0.1% | 68% | 19 | 0.31 | ✓ matches cascade |
| JPM JPM | SHORT | -0.4% · 5d -1.9% | 68% | 25 | 0.31 | ✓ matches cascade |
| SMH SMH | LONG | +2.5% · 5d -0.8% ↺ fades | 68% | 22 | 0.31 | ⚠ differs |
| MSTR MSTR | SHORT | -4.4% · 5d -3.6% | 64% | 22 | 0.21 | ✓ matches cascade |
| ETH ETH | SHORT | -6.7% · 5d -1.9% | 67% | 3 | 0.18 | ✓ matches cascade |
| Bitcoin BTC | SHORT | -6.4% · 5d -1.7% | 60% | 5 | 0.16 | ✓ matches cascade |
| XLF XLF | SHORT | -0.8% · 5d -1.5% | 59% | 22 | 0.16 | ✓ matches cascade |
| 10y yield DGS10 | SHORT | -15bp · 5d -7bp | 58% | 26 | 0.14 | · |
| XLK XLK | LONG | +0.7% · 5d -0.6% ↺ fades | 55% | 22 | 0.07 | ⚠ differs |
| NVDA NVDA | LONG | +3.4% · 5d -3.6% ↺ fades | 55% | 22 | 0.07 | ⚠ differs |
| US dollar DXY | LONG | +0.5% · 5d +0.2% | 54% | 26 | 0.06 | · |
| Volatility VIX | LONG | +3.6% · 5d +1.4% | 48% | 23 | 0.00 | ✓ matches cascade |
| NDX NDX | SHORT | -0.3% · 5d -1.8% | 42% | 24 | 0.00 | ✓ matches cascade |