Markets, economy, stocks, growth, global, fixed income, international, asset classes
Market downturn, bear market
Investors are concerned about the deterioration of corporate debt quality, marked by lower credit ratings and a large share of covenant-lite issuance in the loan market.
This paper examines the U.S. commercial mortgage loan (CML) market and U.S. insurers’ investments in CMLs.
Lending, borrowing and investing in a negative rate world
Global capital requirements and systemic risk within the insurance industry dominated the conversation at this year’s NAIC International Insurance Forum.
In this paper, we assess the potential risks associated with such a strategy by stressing capital requirements using spread-implied ratings.
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.
Since the financial crisis, for a relatively liquid investment CLOs consistently have had the highest spreads net of capital costs for US life insurers.
A preliminary analysis