You have not saved any content. None of the information on this page is directed at any investor or category of investors.
Insurance companies stand poised to combat the challenges of persistently low interest rates, tight investment grade credit spreads, and economic uncertainty by taking advantage of opportunities in public and private credit markets. Mary Anne Guediguian, account manager in the financial institutions group, Chitrang Purani, portfolio manager in the financial institutions group, and Christian Stracke, global head of credit research, discuss trends identified by PIMCO’s Secular Outlook, “Escalating Disruption,” and their investment implications for insurance companies. PIMCO’s base-case outlook for low rates and more volatility, coupled with tight current valuations, requires insurers to be nimble and ready to diversify their credit exposures in the pursuit of stable risk-adjusted income to support policyholder liabilities.
Account Manager, Insurance
Global Head of Credit Research
We examine key themes from our review of advisor fixed income portfolios over the past year.
Heightened market volatility has led to misconceptions about credit, in our view. We dispel four of them here.
Hotels have recovered from the depths of the pandemic, but markets continue to evolve and the recovery has been uneven.
The continued long term impact of COVID-19 on credit markets and global economic activity remains uncertain as events such as development of treatments, government actions, and other economic factors evolve. The views expressed are as of the date recorded, and may not reflect recent market developments.
All investments contain risk and may lose value. Alternative investments involve a high degree of risk and can be illiquid due to restrictions on transfer and lack of a secondary trading market. They can be highly leveraged, speculative and volatile, and an investor could lose all or a substantial amount of an investment. Alternative investments may lack transparency as to share price, valuation and portfolio holdings. Complex tax structures often result in delayed tax reporting. Private credit involves an investment in non-publically traded securities which are subject to illiquidity risk. Portfolios that invest in private credit may be leveraged and may engage in speculative investment practices that increase the risk of investment loss. Investments in Private Credit may also be subject to real estate-related risks, which include new regulatory or legislative developments, the attractiveness and location of properties, the financial condition of tenants, potential liability under environmental and other laws, as well as natural disasters and other factors beyond a manager’s control.
PIMCO as a general matter provides services to qualified institutions, financial intermediaries and institutional investors. Individual investors should contact their own financial professional to determine the most appropriate investment options for their financial situation. This material contains the current opinions of the manager and such opinions are subject to change without notice. This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Forecasts, estimates and certain information contained herein are based upon proprietary research and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. PIMCO is a trademark of Allianz Asset Management of America L.P. in the United States and throughout the world. © 2020, PIMCO.
Pacific Investment Management Company LLC, 650 Newport Center Drive, Newport Beach, CA 92660, 800-387-4626.