InsuranceAUM.com

Episode 133: Benefits of Proprietary Technology for Insurance Clients

In this episode of the InsuranceAUM.com podcast, host Stewart Foley welcomes John Gidman, Chief Operating Officer at Loomis, Sayles & Company, CEO of their subsidiary services company NIM-OS, and President of the Association of Institutional Investors. They dive into the evolution of technology in the institutional asset management space, focusing on how advanced data analytics, customization, and proprietary technology are reshaping the way firms like Loomis deliver solutions to institutional investors, particularly in the insurance space. John discusses the value of owning proprietary intellectual property in front office technology and how it enables Loomis to provide bespoke investment solutions for clients with highly specific needs.

John also shares how Loomis has used its technology expertise to build deep, long-term relationships with insurance clients, positioning the firm as a consultative partner. He emphasizes that the future of institutional asset management lies in scalable customization, and Loomis has made significant investments to meet this demand. Tune in to hear about the fascinating journey of building an efficient technology infrastructure, and the ways Loomis is shaping the future of asset management for its clients.

Episode 132: Investment Grade Market Update with Jake Gaul, CIO of Jennison Fixed Income

In this episode of the InsuranceAUM.com podcast, host Stewart Foley speaks with Jake Gaul, CIO of Jennison Fixed Income, about the state of the investment-grade credit market. They explore a range of critical topics for insurance investors, including the potential impacts of recent banking challenges, corporate earnings trends, and the current value in sectors such as high-quality ABS and CMBS. Jake also shares insights into Jennison’s strategy for navigating opportunities in public credit, with a focus on the firm’s unique approach to being nimble and responsive in managing investment-grade portfolios.

The conversation covers key factors influencing the fixed-income landscape, such as regulatory expectations for banks, earnings performance across sectors, and the shape of the yield curve. With a narrow focus on the high-quality bond market, Jennison’s approach is designed to capitalize on evolving market conditions, providing tailored strategies for institutional clients. Tune in to hear valuable insights on how insurance companies can navigate today’s complex fixed-income environment.

Episode 131: Executive Spotlight: Shawn Robinson, Partner, Credit and Co-Head of Private Fixed Income at Apollo

In this Executive Spotlight episode of the InsuranceAUM.com Podcast, host Stewart Foley interviews Shawn Robinson, Partner at Apollo, who specializes in private investment-grade (IG) credit and corporate solutions. Shawn shares his insights into Apollo’s $400 billion credit platform, with a particular focus on how private IG credit aligns with the investment goals of insurance portfolios.

Shawn explores the opportunities in private IG credit, including infrastructure, project finance, and the growing demand for green transition financing. He highlights Apollo’s unique approach to delivering tailored financial solutions by leveraging their scale, expertise, and collaborative environment. Shawn also discusses the advantages of private credit over public markets, the importance of deal structure, and the resilience of private markets in today's volatile economic climate.

Tune in to this Executive Spotlight episode for a deep dive into how private IG credit can offer stable, high-yielding investments ideal for insurers, and why it’s a critical component of Apollo’s investment strategy.

Episode 130: Navigating the Current Preferred and Capital Securities Landscape with Phil Jacoby, Executive Director and CIO of Spectrum

In this episode of the InsuranceAUM.com Podcast, Stewart Foley is joined by Phil Jacoby, Executive Director and Chief Investment Officer of Spectrum, a subsidiary of Principal. The conversation centers around the complex world of preferred and capital securities, a niche area that Phil has extensive experience in managing. He shares how the market for these securities has evolved over the years, highlighting key shifts, the role of regulators, and the impact of current economic conditions. Phil also breaks down the structural differences between U.S. and European capital securities, providing a comprehensive overview for those looking to better understand this market.

The discussion further explores the value that preferred securities can offer to insurance investors, particularly in today’s interest rate environment. Phil explains how a conservative investment approach, combined with strategic choices in high-quality enterprises, can optimize yield without taking on excessive risk. He also shares insights into how market spreads play a crucial role in managing portfolios that need to be mark-to-market, and what factors investors should consider as we move through 2023 and beyond.

Episode 129: Direct Lending Masterclass with Trevor Clark, Managing Partner at Twin Brook Capital Partners

In this episode of the InsuranceAUM.com Podcast, Stewart Foley talks with Trevor Clark, Managing Partner at Twin Brook Capital Partners, about the evolving landscape of direct lending. Trevor shares his journey into the field, detailing how his background in middle-market lending eventually led to the formation of Twin Brook. Now a leader in lower middle-market lending, Trevor discusses why this niche offers unique opportunities, emphasizing the benefits of focusing on reliable, cash flow-generating companies with private equity backing.

The conversation also delves into the broader trends in private credit, particularly the increasing importance of manager differentiation as the market matures. Trevor explains Twin Brook's strategy of direct origination and conservative credit selection, aiming for long-term, stable returns. For insurance investors, he highlights the advantages of working with a manager who has deep experience, a consistent focus, and a disciplined approach to the asset class, especially in today’s uncertain economic environment.

Episode 128: Invesco’s Kevin Egan on Senior Secured Loans

In this episode of the InsuranceAUM.com Podcast, Stewart Foley speaks with Kevin Egan, Senior Portfolio Manager and Co-Head of Credit Research at Invesco, about the opportunities and risks in the senior secured loan market. Kevin provides a detailed explanation of what senior secured loans are, highlighting their seniority in the capital structure, asset-backed security, and floating-rate nature that makes them a unique investment option. He also shares how these loans performed in 2022, navigating a challenging market environment, and why they continue to attract investor interest in 2023.

Kevin goes on to discuss the fundamentals driving the asset class, including issuer resilience and sector preferences amidst potential economic headwinds. He emphasizes the importance of rigorous credit analysis and active management in the current landscape, underscoring why senior secured loans can offer competitive returns even in uncertain times. With insights into technical market conditions, demand trends, and the impact of the current interest rate environment, this episode is a deep dive into why senior secured loans are an attractive fixed-income strategy for insurance investors.

Episode 127: Trends in US Insurers’ Ownership Structure and the Evolving Regulatory Landscape with Scott White and Amnon Levy

In this episode of the InsuranceAUM.com Podcast, Stewart Foley hosts a discussion on trends in U.S. insurers' ownership structures and the evolving regulatory landscape. Stewart is joined by Scott White, Virginia's Insurance Commissioner and Secretary Treasurer of the NAIC, and Amnon Levy, founder of Bridgeway Analytics. Together, they delve into the shifts in investment strategies and ownership that have emerged since the global financial crisis, focusing on how insurers have adapted to a low-yield environment by moving towards higher-yielding alternative assets. They also explore the increasing involvement of asset managers in insurers' ownership structures and how this has impacted investment practices.

Scott and Amnon provide valuable insights into how regulators have been tracking these changes, the challenges of managing conflicts of interest, and the steps the NAIC has taken to address transparency, governance, and risk. This episode offers a deep dive into how the insurance industry and regulators are navigating this evolving landscape, with a strong emphasis on the balance between regulatory oversight and fostering innovation within the sector.

Episode 126: Macro Environment Impact on Middle Market Lending with Kevin Marchetti of Varagon Capital Partners

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley is joined by Kevin Marchetti, Partner and Chief Risk Officer at Varagon Capital Partners, to discuss the impact of the current macro environment on middle market lending. With interest rates rising and inflation presenting challenges, Kevin provides an in-depth look at how Varagon’s approach—focusing on resilient, recession-resistant industries and maintaining strict credit terms—has positioned the firm to navigate these turbulent times. They explore the resilience of Varagon’s portfolio, strategies for stress testing loans, and the importance of working with private equity-backed companies to ensure stronger outcomes even in challenging markets.

The conversation also touches on the broader economic landscape, including the ripple effects of recent stress in the banking sector and how private credit lenders are poised to step in where traditional banks may retreat. Kevin shares his insights on deal flow trends, the challenges of finding quality opportunities, and the outlook for middle market lending as 2023 progresses.

Episode 125: Investing Across the Credit Spectrum with Bryan Krug, Managing Director and Portfolio Manager on the Artisan Partners Credit Team

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley sits down with Bryan Krug, Managing Director and Portfolio Manager on Artisan Partners’ Credit Team, to explore the evolving dynamics of credit markets. They dive into the changes Bryan has observed over his 24-year career in credit, examining the growth in high-yield and leveraged loan markets, the rise of private credit, and the factors that drive companies to choose between public and private debt solutions.

Bryan shares insights on navigating the current macroeconomic landscape, highlighting how interest rate hikes are impacting credit quality, particularly in private markets. He also discusses risk and return across different segments of the credit spectrum, providing valuable context for investors evaluating their credit allocations. This conversation offers a comprehensive overview of the factors shaping today’s credit environment and how to navigate the opportunities and challenges ahead.

Episode 124: Executive Spotlight: Phil Titolo, Head of Direct Private Investments at MassMutual

Welcome to an Executive Spotlight edition of the InsuranceAUM.com Podcast, where host Stewart Foley sits down with Phil Titolo, Head of Direct Private Investments at MassMutual, to discuss how his team identifies unique investment opportunities outside traditional asset allocation buckets. They dive into MassMutual’s approach to private investments, focusing on assets that can provide diversification and resilience in a complex economic environment.

Phil shares his insights on the growing role of private credit in filling gaps left by banks, especially in today’s shifting regulatory landscape. Stewart and Phil also cover the dynamics of the credit cycle, including the rise of “zombie companies,” and where Phil sees potential mispricing and hidden risks in the market. This episode wraps up with a fascinating take on who Phil would choose to meet from the history of the Federal Reserve.