InsuranceAUM.com

Episode 153: An intro to the inefficient world of Portfolio Debt Securities with Dan Spinner of Eagle Point Credit

In this episode, Stewart Foley sits down with Dan Spinner, Senior Principal and Portfolio Manager at Eagle Point, to explore the niche world of portfolio debt securities. Dan provides a deep dive into this specialized fixed-income strategy, offering insight into how portfolio debt securities can generate returns over 9% while maintaining investment-grade risk profiles. He explains the structure, benefits, and inefficiencies of this lesser-known asset class, making it an attractive opportunity for insurance investors and those seeking to enhance their portfolio’s yield without taking on outsized risk.

Dan also shares the origins of Eagle Point’s strategy and the growing opportunity in the post-SVB environment as banks pull back from lending. With his clear, data-driven approach, Dan outlines the rigorous process of underwriting portfolio debt securities and how they offer a defensive, compelling alternative to traditional credit investments. If you’re looking to understand the unique risks and returns of this asset class, this episode provides valuable insights from one of the leading experts in the field.

Episode 152: EM Corporates with Elisabeth Colleran of Loomis Sayles

In this insightful episode of the InsuranceAUM.com podcast, Stewart Foley, CFA, speaks with Elisabeth Colleran, Vice President at Loomis, Sayles & Company, about the dynamic world of emerging market debt. Elisabeth details the innovative tools her team developed to evaluate and construct EM portfolios, emphasizing how these tools allow them to slice and dice the market to find value across various sectors and regions. By leveraging proprietary analytics and technology, they offer bespoke solutions that cater to the unique needs of insurance clients, whether it’s managing risk, targeting specific geographies, or adhering to strict investment-grade guidelines.

Elisabeth also shares her perspective on the future of EM investing, highlighting the growth opportunities and risks, including the evolving geopolitical landscape and the growing infrastructure in emerging countries like India. She also discusses how EM corporates have matured over the years, offering strong investment-grade opportunities. With an engaging mix of strategy and insights, this episode is a must-listen for anyone looking to explore the potential of emerging markets.

Episode 151: Asset-Backed Lending in a Higher Rate Environment

In this episode of the InsuranceAUM.com podcast, host Stewart Foley, CFA, welcomes back Connell Hasten, Partner at Victory Park Capital, to discuss the ever-evolving world of private credit, particularly asset-backed lending in a higher interest rate environment. Connell shares valuable insights on how private credit has grown tenfold since the Global Financial Crisis, outlining the reasons for its popularity among insurance companies today. He breaks down the different sectors of private credit, such as cashflow and asset-backed lending, highlighting the latter’s importance for mitigating risks, especially in today’s volatile economic climate.

Connell also touches on the best practices for insurance companies looking to allocate to private credit for the first time and for those more experienced in the space. He explains why defensive strategies such as floating rate loans, senior secured debt, and short-term loans are crucial for navigating the current environment. With rising rates and increasing demand for non-bank lenders, Connell’s insights provide a roadmap for insurance investors seeking to optimize their portfolios through private credit.

Episode 150: US Commercial Real Estate Equity with Invesco’s Dan Kubiak

In this episode of the InsuranceAUM.com podcast, host Stewart Foley, CFA, sits down with Dan Kubiak, Managing Director and Portfolio Manager at Invesco Real Estate US Income Strategy, to discuss the state of US commercial real estate. With questions swirling around office space and market valuations, Dan shares his insights on the challenges and opportunities in today's real estate landscape. He also addresses the impact of rising interest rates, the office market's struggles post-COVID, and whether the negative headlines reflect reality.

Dan offers a comprehensive look at how real estate investors are navigating these market conditions, highlighting the importance of focusing on sectors like residential and logistics that offer strong fundamentals. He also explains how investors can manage risk and find opportunities in this shifting environment. Dan provides timely advice for insurance companies using real estate in their portfolios, explaining how the current market could present some of the best opportunities in years.

Episode 149: Capturing Alpha in the Secondary Market through GP-Led Transactions

In this episode of the InsuranceAUM.com Podcast, Stewart Foley, CFA, hosts Paul Sanabria and Jeff Hammer, Senior Managing Directors and Global Co-Heads of Secondaries at Manulife Investment Management, to dive into the growing world of secondary market investments. With secondaries now exceeding $100 billion annually, the conversation explores the evolution of the market from its early days, focusing on the rise of GP-led transactions and the broader opportunities across asset classes like real estate, infrastructure, and private credit.

Paul and Jeff break down the core secondary strategies, highlighting their advantages, and emphasize how the market has shifted from an opportunistic environment to a robust and solution-driven one. They also share insights on the potential for insurance companies to leverage secondaries for better liquidity management, diversification, and attractive risk-adjusted returns. This episode is a must-listen for insurance investment professionals considering allocations to the secondary market and seeking to capture alpha in today's dynamic landscape.

Due Dilly Episode 1: Private Structured Credit with TJ Durkin of Angelo Gordon

In the inaugural episode of the new podcast series Due Dilly, hosts Stewart Foley and John Patin are joined by TJ Durkin, Managing Director at Angelo Gordon, to delve into the world of specialty finance and structured credit. This deep-dive discussion unpacks Angelo Gordon's structured credit strategy, exploring opportunities in both public and private markets, with a focus on asset-based finance, warehouse lending, and non-QM mortgages.

TJ explains how Angelo Gordon’s approach capitalizes on evolving opportunities in private credit, driven by regulatory shifts and the restructuring of bank balance sheets. The conversation highlights the team’s data-driven approach, risk management processes, and the ability to seize value in today’s dynamic market. Insurance professionals looking to understand the role of specialty finance within their portfolios will find this episode particularly insightful as it frames a strategy that complements both traditional private credit and public market exposure.

Episode 147: The Capital Midwest Fraud Detection podcast featuring Tod McDonald and Chris McCall from Valid8

In this episode of the InsuranceAUM.com podcast, host Stewart Foley is joined by Tod McDonald and Chris McCall, co-founders of Valid8, to discuss how advanced technology is revolutionizing fraud detection. Tod and Chris share the fascinating backstory of how Valid8 emerged from a high-profile Ponzi scheme case and explain how their platform helps professionals uncover fraud by analyzing vast amounts of financial data with speed and precision. From bank statements to complex financial transactions, Valid8 offers tools that streamline fraud investigations and provide transparency in areas where fraudsters typically thrive.

The discussion delves into the current state of fraud, particularly in the wake of economic dislocation and rising interest rates, where more cases are expected to surface. Tod and Chris also highlight the role of Valid8 in sectors such as insurance and healthcare, explaining how their technology assists in identifying fraud more quickly and accurately. With the integration of AI, big data, and innovative algorithms, Valid8 is paving the way for a new era in fraud detection, ensuring greater transparency and accountability in the financial world.

Episode 146: Executive Spotlight: Ken McCullum, Executive Vice President and Chief Risk Officer of the Principal Financial Group

In this episode of the InsuranceAUM.com podcast, host Stewart Foley welcomes Ken McCullum, Executive Vice President and Chief Risk Officer of Principal Financial Group. Ken shares insights into the evolving role of a CRO, addressing the risks and challenges faced by insurers today, including the ongoing impacts of COVID-19 on mortality and morbidity, economic uncertainty, and the importance of strong asset-liability management. With 144 years of history, Principal's approach to risk management emphasizes a steady hand through market cycles and the ability to thrive while taking well-understood risks.

Ken also explores key topics such as liquidity management, the rise of private markets, and the need for thoughtful strategic asset allocation. As the first CRO featured on the podcast, Ken provides valuable perspectives on how insurers can balance risk-taking and resilience in a rapidly changing environment. He also shares personal reflections, offering advice on the value of taking calculated risks and highlighting the importance of strong teamwork and leadership within his organization.

Episode 145: ETF Use by Insurers, with Ben Woloshin of SSGA and Raghu Ramachandran of S&P Dow Jones Indices

In this episode of the InsuranceAUM.com podcast, Stewart Foley hosts an insightful discussion on insurance companies' use of Exchange Traded Funds (ETFs). Joining the conversation are Ben Woloshin, Head of SPDR Insurance at State Street Global Advisors, and Raghu Ramachandran, Head of US Insurance Asset Channel at S&P Dow Jones Indices. Together, they explore the significant 23% drop in insurance holdings of ETFs in 2022, the first of its kind since insurers began investing in ETFs. The episode covers key factors driving the decline, such as market valuations and asset allocation decisions, while delving into how ETFs serve as strategic tools for liquidity, sector exposure, and interim beta for insurance companies.

The conversation also touches on how insurance companies are leveraging ETFs for fixed income and equity exposure, regulatory updates, and the growing trend toward using ETFs for securities lending. Both Raghu and Ben emphasize the versatility of ETFs as tools that enhance portfolio management and risk-taking strategies in a changing market landscape. They offer valuable insights on how insurers can effectively integrate ETFs into their investment strategies, particularly with the evolving regulatory framework and market conditions in 2023.

Episode 144: State of the States with Conning’s Karel Citroen

In this episode of the InsuranceAUM.com Podcast, Stewart Foley, CFA, talks with Karel Citroen, Managing Director and Head of Municipal Credit Research at Conning, about the evolving landscape of municipal bonds. They delve into Conning's annual State of the States report, which ranks states based on 13 credit indicators, revealing how economic trends and demographic shifts influence state credit quality. Karel discusses the key drivers behind their recent decision to revise the state credit outlook from stable to declining, touching on factors like lower tax revenue growth, inflation's impact on sales taxes, and state policy changes.

Karel also highlights the complexities facing states as they navigate evolving population patterns and infrastructure needs. With insights into migration trends, fiscal discipline, and relative value in state credit rankings, this episode provides valuable perspectives for insurance investors managing municipal bond portfolios. Whether you're interested in the credit quality of states or looking for guidance on navigating local government debt, this conversation offers important takeaways.