In the case of Japan, the aging population and declining birth rate have, for example, induced higher demand for goods and services targeting the elderly, but not all of this potential demand has been exploited because firms have not necessarily succeeded in identifying and responding to such changes.
In part these draws were used to settle transactions with counterparties returning securities they had borrowed from AIG entities under a securities lending program used by AIG insurance subsidiaries. The cash collateral received by AIG in these lending programs was used to purchase a portfolio of residential mortgage-backed securities (RMBS).