Short Thoughts July 24, 2026 - Offshore Insurers, Meet the Hyperscalers
Michael Burry
· Cassandra Unchained
· 25 июля 2026, 00:28
· ⏱ 2 мин чтения
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Резюме
Michael Burry highlights a new academic paper arguing that private equity firms have loaded life insurers with opaque private credit assets, and state guaranty funds effectively socialize the risk through premium tax credits. The article warns that if these insurers become insolvent, the losses are shifted to surviving insurers and ultimately taxpayers, but no specific trades or positions are disclosed.
•The paper by Granato and Drall examines how PE-owned life insurers use private credit to extract value upfront while imposing losses on others via state-backed guaranty funds.
•State guaranty funds assess surviving insurers to cover shortfalls when a life insurer fails, and most states allow those outlays to be fully creditable against premium taxes over time.
•Burry has been building this thesis in his unpublished 'Heretic’s Guide Part IV' and cites the paper as a rigorous treatment of the mechanism.