InsuranceAUM.com

Episode 136: The CMBS Market with Jim Gubitosi, Co-CIO of IR&M

In this episode of the InsuranceAUM.com Podcast, Stewart Foley sits down with Jim Gubitosi, co-CIO of Income Research and Management, to discuss the current state of the CMBS and commercial real estate (CRE) markets. With interest rates rising and the recent turmoil in the banking sector, Jim offers insight into how these factors are affecting the commercial real estate landscape, particularly in office spaces. He delves into how valuations, refinancing challenges, and the concentration of CRE loans within regional banks are creating stress in the market.

Jim also explains how the CMBS market is holding up amid these pressures and why it remains a valuable investment for insurance portfolios. He provides a deep dive into where the risks lie within the CRE space and emphasizes the importance of understanding granular details, rather than relying on headlines. If you're looking to better understand the CRE landscape and how to navigate potential opportunities and risks in CMBS, this episode offers an invaluable perspective.

Episode 135: Private Markets Today with Tom Keck of StepStone Group

In this episode of the InsuranceAUM.com podcast, Stewart Foley speaks with Tom Keck, partner and head of research and portfolio management at StepStone Group, about the dynamic landscape of private markets. They discuss the rise of private credit, the ongoing disintermediation of banks, and how insurance companies are stepping in as key players in non-bank lending. Tom dives into how private markets create value across different asset classes, and why areas like direct lending and infrastructure are poised for growth despite challenges in other sectors, such as commercial real estate.

Tom also addresses the debate surrounding private equity valuations and volatility, offering insights into whether private markets are truly insulated from recent market turbulence or if there’s more to the story. If you want a deep dive into how private markets are evolving in today’s macroeconomic environment, this episode is a must-listen for insurance investors navigating alternative asset classes.

Episode 134: Mastering Municipal Securities with Jim Jackson, Co-CIO of Victory Income Investors

In this episode of the InsuranceAUM.com Podcast, Stewart Foley, CFA, welcomes Jim Jackson, Co-CIO of Victory Income Investors, to discuss the opportunities and challenges within the municipal bond market. With a background that includes over 20 years of experience in fixed income and managing insurance assets, Jim shares insights into how municipal securities fit into insurance portfolios, the differences between taxable and tax-exempt munis, and the advantages of active management in a diverse and nuanced asset class.

Jim discusses how insurance companies can leverage taxable munis to match liabilities and optimize credit risk, especially given the sector's historically low default rates. He also addresses liquidity in the muni market, current economic conditions, and the benefits of fundamental credit analysis. Whether you're navigating credit risk, considering customization for an insurance portfolio, or exploring the evolving landscape of taxable municipal bonds, this episode provides valuable perspectives on an asset class that remains essential for insurance investors.

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.