The first quarter launched 2021 on a positive note. However, the U.S. Federal Reserve’s response to the crisis has many investors concerned about inflation and rising rates.
In this issue of Insurance Quarterly, our strategists and portfolio managers offer their expertise on valuations, credit and interest rate risks, and offer a variety of opportunities for finding yield and value across the asset class spectrum.
In this issue:
- Market Insights – While markets stayed broadly optimistic, bouts of volatility arose triggering inflation concerns. The world is still investing through the pandemic, but as Seema Shah, Chief Strategist at Principal Global Investors discusses, policy support continues to help drive the global economic recovery.
- Industry Insight – Sam Early, actuary at Principal Financial Group, believes the next few months will provide clarity for insurers as final decisions are made on risk-based capital (RBC) factors for bond investments. Are real estate investments next?
- Spotlight on Portfolio Allocation Strategies – Middle market private high yield has proven time and again to deliver higher yield and return, lower volatility, and better default and loss experience than public alternatives, and we believe insurance investors should consider a greater allocation.
- Asset Class Perspectives – Current views on several real estate and fixed income sectors, as well as emerging market debt.