Natixis Capital Markets is exiting the stable value wrap business, according to sources in the stable value industry.
A timetable hasn't been set. However, sources said Natixis would phase out providing stable value wraps — insurance products that guarantee the book value of the underlying bond investments — perhaps by 2015.
Mitch Karig, a spokesman for Natixis, didn't respond by press time to requests for comment.
A recent quarterly research report on the stable value industry by the consulting firm Hewitt EnnisKnupp said Natixis has been reducing its wrap business slowly and steadily to about $26 billion in 2012 from $33 billion in 2009.
“Multiple industry sources have indicated that Natixis is seeking to reduce its wrap contract book of business substantially by the end of 2013 on the way to an eventual complete exit from the wrap business,” said the analysis, which was prepared earlier this month.
MacKenzie Lucas, a spokeswoman for Aon Hewitt, the parent company of Hewitt EnnisKnupp, declined to comment.