The recent collapse of the Silicon Valley Bank and the ripple effect to other banks has reshaped bank lending, and has potentially created more opportunities for insurers to take a central role.
Retrenchment of banks has led to a funding gap:
- With increased balance sheet provisions and tightening regulation, banks have a reduced ability to provide new financing;
- In certain sectors, banks likely to continue to retrench from lending as capital values fall;
- Elsewhere, insurers are increasingly looking at shorter-dated private credit in asset classes now offering historically high yields;
- As a result of this reduced competition, gross spreads and illiquidity premia for private credit are at some of the highest levels seen in the market.
Join this Insurance Asset Risk and abrdn webinar to discuss implications for insurers' investments in this space.
Cedric Rozier
Head of Private Credit
Phoenix
Nenna Gilmour-Platt
Head of investment strategy
Just Group
Shelley Morrison
Head of Fund Finance
abrdn
