In this paper, we assess the potential risks associated with such a strategy by stressing capital requirements using spread-implied ratings.
UK pension funds are moving to globalise their real estate holdings, taking advantage of increased diversification benefits and greater scale of investment opportunities.
Reaching for yield, which we define as buying bonds with wider spreads after controlling for sector and rating impacts, is a topic that frequently arises in the life insurance industry.
Our summer 2019 edition looks at UK pension buy and maintain strategies, the globalisation of real estate holdings and the importance of timing when investing in a volatile, late cycle environment.
Are your private credit allocations positioned for uncertainty?
We further discuss how institutional investors can protect their portfolios from late cycle headwinds and rising volatility so that they can be positioned for long-term success.
Allocating to multi-asset credit managers, who seek out alpha opportunities without constraint, can improve risk-adjusted returns for the average DB plan.
An alternative risk premia strategy is itself more diversified than a diversified growth fund or an all-equity portfolio.
The performance of the US dollar significantly diverged from relative rate spreads.