InsuranceAUM.com

Episode 167: Emerging Markets Investing for Insurers with Pramol Dhawan, Head of Emerging Markets Portfolio Management at PIMCO

In this episode of the InsuranceAUM.com podcast, Stewart Foley speaks with Pramol Dhawan, Managing Director and Head of the EM Portfolio Management Team at PIMCO, about the opportunities and considerations for insurance companies investing in emerging markets. Pramol breaks down the key reasons why EM offers compelling value to insurance portfolios, including diversification, yield enhancement, and access to high-quality, long-duration assets. He highlights the evolving definition of EM, debunks outdated perceptions, and offers insights into how geopolitical and political risks are priced and managed.

The conversation dives into technicals, fundamentals, and how PIMCO’s approach to managing insurance assets in emerging markets focuses on avoiding capital impairment while maximizing risk-adjusted returns. Pramol also touches on alternative sources of EM yield, including private market opportunities. For insurance investment professionals exploring EM allocations, this episode offers a comprehensive look at how to approach these markets effectively.

Episode 166: Opportunities in Securitized

In this episode, we dive deep into the securitized markets with Dmitri Rabin, Head of Securitized at Jennison Associates. Dmitri provides an insightful overview of how the agency MBS market has performed year to date following a tough 2022, discussing how rising interest rates, extension risk, and volatility have impacted the market. He highlights the current opportunities within the mortgage market, where valuations and spreads offer potential for investors—particularly in the extended, lower-coupon bonds. Dmitri also shares his perspective on key sectors like ABS and why Jennison favors high-quality, liquid securities that still offer attractive spreads. His analysis is grounded in long-term investment principles that fit well with insurance companies' needs for both yield and liquidity.

We also explore broader market trends such as the challenges in commercial real estate and its implications for CMBS and banks, and we discuss why Jennison takes a cautious approach toward CLOs. Dmitri breaks down how careful security selection, liquidity management, and collaboration within Jennison’s credit and rates teams drive success in securitized products. His experience and thoughtful approach to managing risk while seeking opportunity provide listeners with valuable insights into navigating today's complex fixed-income landscape.

Episode 165: Passive Investing Doesn’t Exist in Fixed Income

In this episode, Steve Boothe, Head of Global Investment Grade at T. Rowe Price, joins the podcast to share his insights on the current state of the bond market. Steve makes a bold statement—there’s no such thing as passive bond investing—and he explains why that’s the case, delving into how market structure, liquidity dynamics, and the shifting ownership landscape are transforming fixed-income markets. He also explores why recent flows into credit and equities have remained robust despite higher volatility in the treasury market, and how issuers’ ability to lock in long-term financing during lower-rate periods is shaping the supply side of corporate debt.

Steve’s conversation with Stewart Foley also covers how security selection is at the core of T. Rowe Price’s approach to navigating challenging market conditions. He discusses the firm’s views on regional banks, liquidity risks, and the interplay between private credit and corporate financing needs. Steve also highlights T. Rowe Price’s long-standing role in insurance asset management, focusing on customized solutions and the importance of understanding client-specific requirements like book yield, liquidity, and regulatory environments. This episode provides a masterclass in fixed income, unpacking complex market trends in an accessible way for insurance investment professionals.

Episode 164: Energy Transition Pathway: Investment Risks, Rewards and Unintended Consequences

In this episode, we dive deep into the energy transition with Stu Porter, Founder of Denham Capital, a leading energy and resource-focused private equity firm. Stu shares his remarkable journey, starting from his days on the trading floor at the Chicago Board of Trade, through his tenure at the Harvard Endowment, to building Denham Capital into a global investment powerhouse. He offers unique insights into the evolving energy landscape, discussing the importance of finding investment opportunities that balance sustainability with reliability and cost-efficiency.

Stu outlines Denham's four dominant investment themes for the coming decades, including the role of the U.S. as a leader in clean energy, the potential of sustainable infrastructure beyond solar and wind, the rising importance of private credit in the energy transition, and the critical challenges in securing the minerals needed for decarbonization. Stu also highlights the partnership with Aflac and the growing synergy between insurance companies and alternative asset managers. This episode is packed with thought-provoking insights on navigating investment risks, rewards, and unintended consequences in the global shift toward sustainability.

Episode 162: Don’t Call it a Comeback – Private Equity Secondaries with Adam Freda of 50 South Capital

In this episode, we explore the rapidly evolving world of private equity secondaries with Adam Freda, Managing Director at 50 South Capital. Adam shares insights on how the secondary market has grown from a niche sector to a $100 billion-plus market, offering critical liquidity options for private equity investors. He explains how the secondary market provides a unique opportunity for both buyers and sellers, allowing investors to adjust their portfolios, avoid the J-curve, and achieve attractive returns through discounted deals.

Adam also delves into the growing trend of GP-led secondary transactions, where private equity fund managers manage their older funds more actively, and outlines how secondary funds have consistently outperformed stocks while offering a reliable diversification tool. He provides a fascinating outlook on the future of the secondary market and why it is becoming an essential part of the private equity landscape for institutional investors, including insurance companies.

Episode 161: The Em-ification of DM with Peter Kent

In this episode, we sit down with Pete Kent, Portfolio Manager and Co-head of Emerging Market Fixed Income at Ninety One, to explore the concept of the "EMification" of developed markets. Pete shares his insights on the misconceptions surrounding emerging markets (EM), particularly in comparison to developed markets (DM), and explains how recent volatility and performance in DM resemble characteristics more commonly associated with EM.

Pete provides real-world examples, from the yen’s depreciation to the UK gilt crisis, highlighting how EM's resilience and orthodox behavior have challenged outdated perceptions. We also dive into key drivers behind EM’s recent outperformance, the evolving risk-return profile in global markets, and the new volatility regime in DM. This episode is packed with valuable insights for anyone interested in understanding the shifting dynamics between EM and DM and what it means for investment portfolios moving forward.

Episode 160: Private ABS with Aegon Asset Management’s Jim Baskin and Transamerica Life’s Ryan Patterson

In this episode of the InsuranceAUM.com podcast, Stewart Foley welcomes Ryan Patterson, Head of Investment Strategy at Transamerica, and Jim Baskin, Head of Private Structured Finance at Aegon Asset Management. The conversation dives into private structured finance and the close relationship between Aegon Asset Management and Transamerica Life. Jim reflects on the evolution of the private structured finance market since the late 80s, highlighting the increasing sophistication in insurance asset management. Ryan shares insights into how Transamerica navigates the growing universe of private credit, focusing on finding the right fit for their liabilities.

Both guests discuss the growing role of private credit in insurance portfolios and how new dynamics—such as private equity-backed acquisitions of insurance companies—have shaped the landscape. They also explore the importance of collaboration between insurance companies and asset managers in navigating the complexities of insurance asset management, offering a unique look into the partnership between Transamerica and Aegon Asset Management. Whether you’re an insurance investment professional or curious about private credit markets, this conversation offers deep insights into managing risk and finding value in private structured finance.

Episode 159: Global Private Placements Deconstructed

In this episode of the InsuranceAUM.com podcast, host Stewart Foley sits down with Alex Alston, Division Director and Co-Head of Private Placements at Macquarie Asset Management, to discuss the evolving landscape of private placement fixed income. They dive into the defining characteristics of the asset class and why it has gained increasing traction, particularly among insurance companies seeking yield, diversification, and structural protections in today’s higher interest rate and inflationary environment.

Alex shares Macquarie’s broad approach to private placements, which spans various sectors and global markets. He explains the strong relationship between private placements and insurance asset management, emphasizing the appeal of yield enhancement, capital efficiency, and the flexibility it provides to both issuers and investors. The conversation also touches on the importance of deal sourcing, where Alex highlights Macquarie’s unique positioning as a boutique-style firm with the backing of a global asset manager, creating a competitive edge in accessing quality deals.

This episode offers valuable insights for insurance investment professionals looking to better understand the role of private placements in fixed income portfolios and why they remain an attractive option despite current market conditions.

Episode 158: Role of Sustainable Infrastructure in Private Credit with Brad Dyslin and Eric Kirsh (current/former CIO Aflac Global Investments) and Justin DeAngelis (Partner, Denham Capital)

In this episode of the InsuranceAUM.com podcast, host Stewart Foley, CFA, is joined by an impressive panel to discuss the role of sustainable infrastructure in private credit and its application within the insurance industry. Brad Dyslin, Executive Vice President, Global Chief Investment Officer, and President of Aflac Asset Management; Eric Kirsch, former Global Chief Investment Officer at Aflac; and Justin DeAngelis, Partner and Co-Head of Sustainable Infrastructure at Denham Capital, dive into how sustainable infrastructure fits within insurance portfolios and how it aligns with the future of energy and finance. They explore the growing role of private markets in financing sustainable projects, the potential for excess yield, and the unique value insurance companies can bring to these investments.

The conversation highlights the Inflation Reduction Act's impact on renewable energy investments and how insurance companies, with their long-term liabilities, are well-positioned to drive capital into this market. The panel also touches on the advantages of private credit, default rates, and how sustainable infrastructure presents a win-win opportunity for insurers seeking both strong returns and alignment with ESG principles. Tune in to learn how these experts are navigating the complex intersection of sustainability, private credit, and insurance investment strategies.

Episode 157: Investing in Emerging Market Debt Using a Mosaic Approach

In this episode of the InsuranceAUM.com podcast, Stewart Foley, CFA, is joined by Polina Kurdyavko, Head of Emerging Market Debt and Senior Portfolio Manager at RBC Global Asset Management's BlueBay. Polina shares her insights into the dynamic and evolving world of emerging market fixed income, discussing the appeal of the asset class, its growth trajectory, and its significance in today’s global financial landscape. With over $11 billion in EM assets under management, Polina explains how emerging markets offer unique opportunities for investors, particularly through a focus on engagement with policymakers and corporate management in these regions.

Polina also delves into the structure and complexity of EM debt, covering the four main subcategories, including hard currency and local currency bonds. She highlights how emerging markets have matured, offering credit quality that rivals more developed markets, and shares her thoughts on the current investment environment, liquidity, and lessons learned from previous crises. This episode offers a deep dive into EM fixed income and valuable insights on navigating these markets for better risk-adjusted returns.