Things are not always what they seem. This is proving true in the municipal bond market, where a perception shift is underway that carries profound implications – and opportunities – for investors. What has become acutely clear over the last 16 months is that the conventional wisdom around risk and return in municipal bonds is ripe for some fresh perspective. Read our take on how the pandemic response is causing investors to rethink municipal bonds.
Investment grade private credit has been a major investment theme for U.S. insurers of all types. The asset class can offer additional yield, diversification and risk charges similar to that of a public corporate bond.
Invesco analyzes four specialty real estate sectors, notably: data centers, infrastructure, single family rentals and health care/life science, which could be solid plays for investors in the years to come.
Learn why we believe FHLB loans provide compelling potential for insurers to add alpha or increase yield by borrowing at low rates and benefitting from possible favorable treatment by ratings agencies. In addition, explore examples of customized investment solutions that have the potential to capitalize on these advantages.
The Northern Trust ESG Vector Score is a measurement that assesses publicly traded companies in the context of financially relevant environmental, social and governance (ESG) related criteria that could impact their operating performance.
Insurance investors’ jobs have perhaps never been more challenging than they are
in today’s market environment – the COVID pandemic is entering its second year,
interest rates remain near historic lows, and credit spreads in public fixed income
provide very little compensation for bearing credit risk.
Insurers continue to grapple with low rates and search for ways to add yield in this environment. While overall portfolio allocations were stable in 2020, there were several noteworthy allocation moves, including a continued decrease in municipals and growth within NAIC 3-rated securities. In our third annual analysis of insurance company filings, we examine the impact of these trends and changes both in 2020 and going forward. We also explore how insurers can navigate this low-yield environment without moving too far out on the risk spectrum.
In our most recent commercial real estate outlook, we outline why cap rates may fall during the second half of 2021, explore recent work-from-home and office leasing trends, and comment on the unique “K” shaped nature of the economic downturn/recovery.
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