InsuranceAUM.com

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.

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.

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.

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.

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.

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.

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.

In today’s episode, host Stewart Foley welcomes Max Gold, Head of Gold Strategies at State Street Global Advisors, to demystify the unique role of gold as an asset class. Max shares insights on what drives the gold market, covering short-term market flows, medium-term factors like interest rates and inflation, and long-term fundamentals including demand sectors such as jewelry, technology, and central bank activity. He also discusses how gold’s low correlation with traditional assets enhances portfolio stability, especially for insurance investors focused on risk management and capital preservation.

Max provides a comparison between gold and other commodities, highlighting gold's unique function as a store of value and its role as a potential inflation hedge. For institutional investors, he outlines practical ways to access gold at scale and details the different vehicles available to help maximize gold's efficiency in a diversified portfolio.

In today’s episode, host Stewart Foley welcomes Matt Christ, Managing Principal and Head of the Transition Debt Strategy at Ninety One, to discuss climate and energy transition in emerging markets. Matt explores how Ninety One’s approach is driving real-world decarbonization by actively engaging with heavy-emitting sectors, including power, industry, and transportation, instead of simply divesting from these high-emission assets. He also delves into Ninety One’s unique use of both public and private credit to create impact and enhance returns, while addressing concerns around greenwashing and transition washing with rigorous, science-based carbon impact assessments.

Matt also shares insights on how geopolitical tensions and the demand for energy security are spurring opportunities in renewable energy sources, including solar and green hydrogen, particularly in markets like India. He wraps up with his thoughts on the importance of climate investing today, even with imperfect data, encouraging investors to prioritize near-term progress over waiting for perfect metrics.

In today’s Executive Spotlight episode, host Stewart Foley welcomes Patrizio Urciuoli, Head of Strategy and Asset Allocation at Liberty Mutual Investments. Patrizio shares how Liberty Mutual’s investment philosophy uniquely aligns with its mission as a mutual insurance company, creating capital to meet policyholder needs and support business growth. Drawing on parallels between his lifelong passion for sailing and his approach to strategy, Patrizio explains how clear vision, adaptability, and resilience guide both Liberty Mutual’s investment decisions and his leadership style.

Together, they discuss the current macro environment and the importance of building a flexible portfolio amidst rapid change and tightening credit conditions. Patrizio also shares Liberty Mutual's approach to ESG, emphasizing how incorporating sustainability into investment decisions allows for both smarter risk management and growth opportunities, especially in energy transition. Throughout, Patrizio stresses the importance of cross-functional synergy, showcasing Liberty Mutual’s collaborative approach to navigating today’s complex market landscape.