Market insight

• Insurance solutions: Rise of the residential whole loan

  Given the potential for yield and capital efficiency, residential whole loan mortgages have been the fastest growing asset class in life insurers' investment allocations in recent years.

  

• Liquidity optimisation for insurers: Building a bespoke portfolio solution

  Access to cash and cash-equivalents has come into greater focus in the wake of recent market events and regulatory changes. Regulators around the world have been asking investors to hold more liquidity and/or placing greater emphasis on existing rules.

  

• Portfolio Finance: Missing a $100+ Billion Annual Opportunity

  The rapid expansion of private markets has created an opportunity for investors to earn attractive returns in private IG credit, underpinned by the financing needs of asset managers and funds. Yet this segment of the market remains little known and less understood.

  

• The lost art of credit analysis in buy and maintain management

  As we move into the later stages of the credit cycle, effective risk management within core fixed income portfolios is an increasingly pertinent issue for insurance companies. In our view, it is vital to have an active approach within buy and maintain strategies, to capture upside potential and mitigate downside impact.

  

• Untangling complexity: A step-by-step guide to crafting optimal portfolios under the Matching Adjustment (2024 edition)

  In our 2024 edition, we provide insight into the proposed MA reforms and the key areas in which this will impact insurers from an investment and reporting perspective.

  

• Insurance Solutions: Four Themes Emerging in Life Insurers' Asset Allocations

  Life insurers are continuing to move toward less liquid securities—which provide the potential for yield enhancement—while simultaneously de-risking from a credit perspective.

  

• Bridging the Gap: Opportunities in Short-Term Loans to Address Long-Term Affordability

  Amid rising costs and competition, owners and developers seeking to establish affordability in the multifamily apartment space are turning to short-term bridge loans to secure financing, ensuring sustainability during the process of obtaining government-sponsored housing credits

  

• Private credit: The Growing Opportunity in Private Placements

  Private placements have become an established source of funding for borrowers. Given the potential for incremental returns, diversification, and downside protection, investors are increasingly turning to this asset class too.

  

• Income strips for insurers - a natural fit?

  Given their high quality and inflation-linked nature, income strips have always been a popular asset class with insurers but current market dynamics make the opportunity particularly attractive, in our view.

  

• Alternative opportunities: What's the outlook for private market assets?

  Alternative Opportunities is a quarterly report from Invesco focusing on the outlook for private credit, private equity, real estate, infrastructure and commodities.