InsuranceAUM.com

Episode 116: Opportunities in EM Debt with Tom Smith of MetLife Investment Management

In this episode of the InsuranceAUM.com podcast, Stewart Foley speaks with Tom Smith, Emerging Market Portfolio Manager at MetLife Investment Management, to explore current dynamics and future opportunities within emerging market debt (EMD). Tom shares his experienced perspective on the macroeconomic factors impacting EM debt, including the aftereffects of the pandemic, inflationary pressures, China’s reopening, and the ongoing conflict in Ukraine. Despite recent volatility, Tom explains that easing pressures could create a more favorable environment for EMD in 2023, with stronger fundamentals seen in emerging market corporate and sovereign debt.

Tom also discusses why EM corporates stand out with strong balance sheets and lower leverage than their U.S. peers, making them attractive for insurance investors focused on capital preservation. He provides insights into the stabilizing trends in sovereign debt and the potential for spread compression if macro conditions continue to improve. Tom emphasizes the need for a careful, selective approach, highlighting the resilience of certain EM credits and noting that MetLife Investment Management prioritizes capital preservation in their EM strategies.

Episode 115: The Private Credit Landscape with with Bill Bohnsack, President of Oak Hill Advisors

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley talks with Bill Bohnsack, President of Oak Hill Advisors, about the dynamic landscape of private credit. Bill shares insights into how the market is adjusting in early 2023 following the volatility of 2022, highlighting key themes such as inflation risks, credit spreads, and the impact of Fed rate hikes on public and private markets. With substantial private capital to deploy, Oak Hill Advisors is strategically positioned in sectors where they see promising opportunities, including large-cap corporate credit, infrastructure, real estate, and NAV lending. Bill explains that private credit has evolved to fill gaps left by banks and other traditional lenders, providing unique opportunities to capitalize on credit complexity and illiquidity premiums.

Bill also discusses the outlook for distressed investing, noting the potential for increased defaults as companies contend with lingering inflation and higher interest rates. While the distressed market isn’t currently in wholesale territory, Bill anticipates that rising liquidity needs and sector-specific challenges in areas like healthcare and technology could create notable opportunities over the next few years.

Episode 114: Conning’s Risk Assessment Survey of US Insurers, an Interview with Matt Reilly and Scott Hawkins

Welcome back. Thanks for listening. We are talking about a very important Risk Management Survey today that's been done by Conning. And we're joined by Matt Riley and Scott Hawkins.

Episode 113: Inflation, Labor Markets, and the Fed featuring Mike Ashton, the Inflation Guy

In this engaging episode of the InsuranceAUM.com Podcast, host Stewart Foley welcomes back Mike Ashton, aka “The Inflation Guy,” to discuss the Federal Reserve’s current stance on inflation, the effectiveness of monetary policy, and what the future might hold for the economy. Mike shares his thoughts on how the Fed’s strategy has changed, shifting focus from managing money supply to interest rates—a tool that he argues has its limitations and potential risks. He underscores the complexities of using interest rates to manage inflation without precise knowledge of the demand curve, noting that the Fed's approach may yield unexpected outcomes.

Mike and Stewart also explore the role of inflation in managing public debt, debunking the notion that high inflation will ease the U.S. debt burden. They touch on how structural changes, such as near-shoring and labor shortages, may reshape the economy, ultimately empowering labor over capital—a trend that could impact corporate earnings. Lastly, Mike provides his forecast for interest rates and his thoughts on AI's potential effects on the labor market.

Episode 111: Executive Spotlight: Lale Topcuoglu, Managing Director, Head of Credit for Swiss Re Management

In this insightful episode of the InsuranceAUM.com podcast, Stewart Foley sits down with Lale Topcuoglu, Managing Director and Head of Credit at Swiss Re, for an honest and wide-ranging conversation. They discuss the economic landscape of 2023, with Lale sharing her thoughts on "gray swan" risks—the predictable yet often overlooked challenges in credit markets—and the potential fallout from companies over-leveraged in a liquidity-heavy, low-interest rate era. She also explains her approach to fundamental credit analysis in an environment where many investors focus more on macro trends than on balance sheets and cash flow.

In addition to market insights, Lale speaks candidly about the role of networking, her involvement with the Insurance Women's Investment Network (IWIN), and the importance of mentorship in financial services. Lale and Stewart also delve into topics of personal resilience and mental health in the workplace, shedding light on the importance of asking for help and seeking balance in a high-pressure industry.

Episode 116: Private Structured Credit Masterclass with TJ Durkin of Angelo Gordon

Join host Stewart Foley on the InsuranceAUM.com Podcast as he speaks with TJ Durkin, Managing Director and Head of Structured Credit at Angelo Gordon, to unpack the intricacies of structured credit for insurance investors. From ABS to private credit and residential mortgages, TJ shares insights into the evolving opportunities and challenges in today’s markets. Discover how Angelo Gordon’s expertise in both public and private markets enables them to deliver value across structured credit and specialty finance asset classes.

TJ delves into the current state of public and private credit, offering perspectives on how recent market volatility and changing technicals are reshaping investment opportunities. With a focus on housing, specialty finance, and the impacts of macroeconomic trends, this episode provides a comprehensive look at structured credit strategies for insurance investors. If you're looking to understand how insurers can position portfolios in this dynamic environment, this conversation offers actionable insights.

Episode 115: Maura Cunningham, CEO and Founder of Rock The Street, Wall Street

In this episode, Stewart Foley sits down with Maura Cunningham, CEO and Founder of Rock The Street, Wall Street, a nonprofit focused on empowering high school girls with financial literacy and inspiring them to pursue careers in finance. Maura shares her journey from the Bronx to Wall Street and how her firsthand experiences with gender and racial disparities in the finance industry fueled her mission to close these gaps.

The conversation explores the cultural factors behind girls’ early disengagement from math and how Rock The Street, Wall Street combats this trend by connecting students with female financial professionals. Maura discusses the organization's rapid growth, future plans, and its impact on creating a more diverse and inclusive pipeline for the finance industry. Don’t miss this insightful dialogue on driving equity and opportunity in financial markets.

Episode 114: Talking MBS, Govies, and Agencies with Jake Remley of IR&M

In this episode, Stewart Foley speaks with Jake Remley, Principal and Senior Portfolio Manager at Income Research and Management, about the dynamic mortgage market and its impact on insurance portfolios. Jake shares insights on how agency MBS has evolved in response to rising interest rates, the extension of mortgage durations, and shifting prepayment behaviors.

They also discuss the broader US government bond market, the role of analytics in assessing mortgage-backed securities, and where Jake sees opportunities for insurers in today’s complex fixed-income landscape. Whether you’re navigating convexity, looking for value in govies, or curious about the state of agency arms, this conversation provides actionable insights for institutional investors.

Episode 113: The 5 Investment Data Challenges with Phil Dauer of Grandview Analytics

In this episode, Stewart Foley sits down with Phil Dauer, Senior Director at Grandview Analytics, to delve into the five key investment data challenges facing insurance companies today. From reconciling data across investment and accounting books (IBOR vs. ABOR) to the complexities of integrating alternative investments and external manager data, Phil shares actionable insights and solutions to these pressing issues.

They also discuss the challenges of asset-liability integration, ensuring compliance validation, and adapting to the evolving landscape of investment oversight. Whether you’re grappling with the intricacies of regulatory requirements or seeking ways to streamline data management, this episode provides valuable perspectives for insurance investment professionals navigating today’s complex market environment.

Episode 112: Executive Spotlight: Waymond Harris, Senior Vice President and Treasurer of Blue Cross Blue Shield of Michigan and President of Bricktown Capital

In this Executive Spotlight episode, Stewart Foley speaks with Waymond Harris, Senior Vice President and Treasurer of Blue Cross Blue Shield of Michigan and President of Bricktown Capital. Waymond shares his approach to navigating volatile markets, emphasizing preparation and diversification to weather uncertainty. He also details the innovative creation of Bricktown Capital, a registered investment advisory subsidiary, which institutionalized compliance and controls to support Blue Cross Blue Shield’s growing enterprise.

Discover how Waymond and his team have built a robust alternatives program, implemented factor-based equity strategies, and fostered a diverse and mission-driven workforce. Waymond also reflects on his West Point roots, the importance of flexibility in planning, and the unique challenges and rewards of managing assets for a not-for-profit mutual company. This conversation is a masterclass in leadership, innovation, and strategic thinking in insurance asset management.