First Executive’s Junk Bond Deal Examined: California...

First Executive’s Junk Bond Deal Examined: California regulators are investigating the transfer of more than $700 million in junk bonds by First Executive Corp. to affiliated companies, according to a report in the New York Times. The transaction allowed the Los Angeles insurer to reduce the amount of its reserves against losses by an estimated $10 million a year, the Times reported. The extent of the investigation by the California Department of Insurance and the possible outcome for First Executive could not be determined, according to the Times.