Since the global financial crisis, we continue to live in an increasingly low yield world. There has been hope that highly accommodative rates across the major developed economies would eventually drive a meaningful acceleration in global GDP and a normalised rate environment.
However, that has not happened. Instead, after seeing short term European rates hold in negative territory for several years and US rates at historical lows, we saw global rates driven even lower by the COVID-19 pandemic, which caused the most highly synchronised contraction in global GDP in modern history.
While uncertainty remains high, we do think it is reasonable to expect that this environment of extremely low interest rates is here to stay for at least the next few years.
Our latest white paper reveals how Emerging Market Investment Grade Debt could help you capture higher yields, while maintaining credit quality and capital requirements.
In this low-yielding environment, Emerging Market Investment Grade Debt could offer:
Broadly syndicated loans feature a favourable long-term risk/return profile compared to HY bonds and equites, making them attractive for insurance companies.
Charles Moussier, Head of EMEA Insurance Client Solutions shares his views on the outlook and opportunities for Insurance clients, including why the Insurance team are underweight equities relative to fixed income and may see opportunities for insurers in private credit.
Discover why senior secured loans offer insurers high income, low risk, and strong fundamentals. Improving returns and reducing capital charges.
