In late May, the NAIC’s Life Risk Based Capital (RBC) Working Group approved a proposal to reduce capital charges for real estate equity investments. Whereas RBC charges were previously 15% for direct investments on Schedule A and 23% for Schedule BA investments, the newly adopted charges will be 11% and 13%, respectively. This is a significant benefit for life insurers for multiple reasons.
The race to zero is on. We explain what the key components of Paris-aligned investing are and what we’ve learned from the process of developing our own net zero roadmap.
The NAIC approved updates to risk-based capital (RBC) bond and real estate equity factors for U.S. life insurance companies; we examine the changes from the prior RBC regime, as well as the implications on relative value considerations and life insurers’ strategic and tactical asset allocation.
The pandemic accelerated the secular work-from-home trend, creating winners and losers in office real estate assets.
The market conditions triggered by the COVID-19 pandemic are shifting the way fixed income investors need to think about managing and mitigating credit risk. Insurance companies will need to identify new opportunities across the full spectrum of public and private investments in order to meet their yield objectives. Join us as we discuss how to position your portfolio to take advantage of these new dynamics in credit risk management.
As Covid-19 restrictions ease and the global economy begins to reopen, the current state of the high-yield market is in a unique position. Top of mind issues for credit investors now include rising rates and inflation, challenges that have been dormant for years.
As the global economy continues to recover, an accommodative Federal Reserve (Fed) and stimulative fiscal policy have pushed inflation concerns to center stage. By some measures, inflation is at its highest in over a decade, and several factors could sustain these levels. Conversely, other metrics point to a more benign environment, and suggest the recent increase may be “transitory.” While we do not predict the future, we believe overall inflation risks are elevated, particularly given current spreads and valuations. In this piece, we focus on key inflation metrics and the potential impact of inflation on the insurance industry.
Our sector strategy advisory group (SSAG) model portfolio can be helpful in distilling the extensive fundamental and quantitative research from the SSAG into a portfolio construction context.
COVID-19 disrupted US commercial real estate fundamentals. However, we believe economic and societal shifts post-COVID-19 have also created opportunities. In this article Invesco analyzes the current investment landscape and which sectors are well-positioned to outperform in the economic recovery and likely to benefit in commerce and commercial property use.
Are insurers making a mistake when it comes to their paltry allocation to Emerging Market (EM) Corporate Debt? We think so.
U.S. real estate started the year on a strong footing. Fundamentals and prices stabilized as the economy gathered momentum. Investment performance returned to pre-COVID levels.
Rate volatility and several idiosyncratic stories during the second quarter drove market performance within Emerging Markets. With delays to vaccine rollouts and continued high daily new cases and deaths hindering re-opening plans and putting excess pressure on economies, EM countries have lagged in the COVID-19 recovery. We expect Emerging Markets recovery to be a second half 2021 story, with countries starting to take active steps to reduce some of the unprecedented policy actions. We remain optimistically cautious given still robust accommodation, supportive growth and positive flow dynamics. In this paper, we look back at Emerging Markets in the second quarter, as well our expectations for the asset class in the second half of the year.
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CFA Society New York Asset Owners Series with AFLAC's Eric Kirsch
Riding the Waves in Credit
T. Rowe Price
Playing for a Post-COVID World in Securitized Credit
T. Rowe Price
Stone Harbor: Good Yield Hunting – Navigating Emerging Markets Debt in a Low Yield World
Stone Harbor Investment Partners
Riding the Waves in Credit
T. Rowe Price
Playing for a Post-COVID World in Securitized Credit
T. Rowe Price
Stone Harbor: Good Yield Hunting – Navigating Emerging Markets Debt in a Low Yield World
Stone Harbor Investment Partners
Loomis Sayles Hires Insurance Industry Veteran to Support Continued Growth
Loomis Sayles & Company, LP
Using Credit Risk to Your Advantage in a Post-COVID Economy
Northern Trust Asset Management
Three Considerations for Insurers Weighing an EM Corporate Debt Allocation
Loomis Sayles & Company, LP
Emerging Markets: Market Review and Outlook
MetLife Investment Management
Bond Compass: Catching Yield Waves This Summer
State Street Global Advisors SPDR®
Still Chained: N95 Masks and Supply Chains Lessons During COVID-19
MetLife Investment Management
Supply/Demand Mismatches and 2020 Economic Growth
MetLife Investment Management
NAV lending: a solution for liquidity and mid-life private equity funds?
Aberdeen Standard Investments
State Street Global Advisors June Global Market Outlook
State Street Global Advisors SPDR®
ETFs in Insurance General Accounts – 2021
Raghu Ramachandran
Alts Transparency: Finding The Right Balance
Northern Trust Asset Management
Global Asset Allocation Viewpoints, 2Q 2021: Investing through the pandemic
Principal Global Investors
Insurance Multi-Asset Outlook — Rising rates: Threat or opportunity?
Wellington Management
Insurers: A potent plan of attack for 2021
Wellington Management
