InsuranceAUM.com

Episode 210: Asset-Based Lending for Insurers with PIMCO’s Kris Kraus, Portfolio Manager & Co-Head of Specialty Finance

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley sits down with Kris Kraus, Portfolio Manager and Co-Head of Specialty Finance at PIMCO, to delve into the evolving world of asset-based lending and specialty finance. Kris shares his journey from growing up in Northern California to his current role at PIMCO, highlighting the unique aspects of insurance asset management.

The conversation covers the definition and scope of specialty finance, its rapid growth since the Global Financial Crisis (GFC), and why it remains a compelling investment opportunity. Kris explains the intersection of market forces that make specialty finance a secular trend rather than a fleeting opportunity. He also discusses the impact of regulatory changes, such as Basel III and CECL, on bank lending and how insurance companies can benefit from these shifts.

Stewart and Kris explore the intricacies of sourcing deals, the role of non-bank originators, and the importance of structuring investments to meet insurance-specific criteria. This episode provides valuable insights for insurance investors looking to navigate the specialty finance landscape and capitalize on the current market dynamics. Tune in for an in-depth discussion on the strategies and opportunities in asset-based lending for insurers.

Episode 209: Modernizing the NAIC’s investment risk oversight framework

In this engaging episode of the InsuranceAUM.com Podcast, host Stewart Foley welcomes Commissioner Nathan Houdek, the Commissioner of Insurance for the State of Wisconsin and Chair of the NAIC (E) Committee, alongside Amnon Levy, Founder and CEO of Bridgeway Analytics. Together, they dive into the critical topic of insurance regulation, focusing on the significant long-term initiative to revamp investment risk oversight.

Commissioner Houdek provides insights into the evolving landscape of insurance investments post-Great Financial Crisis, the increasing reliance on private and structured assets, and the regulatory challenges these changes present. Amnon Levy adds depth to the discussion, exploring the complexities of credit rating agency reliance, the importance of transparency, and the mechanisms for prudent use of agency ratings.

Listeners will gain a comprehensive understanding of the NAIC's (E) Committee’s modernization efforts, the role of the Securities Valuation Office (SVO), and the planned enhancements to portfolio risk analysis capabilities. This episode is a must-listen for anyone interested in the intricacies of insurance regulation and the proactive steps being taken to ensure insurer solvency and consumer protection.

Episode 208: Current Interest Rate Environment and Potential Investment Opportunities

In this episode of the InsuranceAUM.com podcast, host Stewart Foley is joined by Sam Kaplan, CFA, Managing Director and Portfolio Manager at Jennison Associates, for an in-depth discussion on fixed income, the yield curve, and Fed policy implications. They explore the unique aspects of insurance asset management and delve into the current state of the yield curve, the factors driving its ongoing normalization, and the role of Fed expectations in shaping future rate cuts.

Sam Kaplan shares his journey from caddying at a golf club to managing portfolios at Jennison Associates, highlighting the dynamic nature of fixed income management and the constant challenges it presents. The conversation covers key topics such as relative value opportunities, dislocations along the yield curve, and the potential impact of increasing Treasury issuance on yields.

Listeners will gain valuable insights into the complexities of the fixed income market, the drivers behind current market conditions, and the outlook for yields in the coming years. This episode is a must-listen for fixed income enthusiasts and professionals looking to stay ahead in a rapidly evolving market..

Episode 207: UK Commercial Real Estate – Lending into the Recovery

In this episode of the InsuranceAUM.com podcast, host Stewart Foley sits down with Martin Barnwell, Investment Director on the commercial real estate lending team at Aberdeen. Recorded shortly after Stewart's trip to Minneapolis, where commercial real estate lending was a key topic, this episode dives deep into the intricacies of the UK real estate market. Martin shares his journey from Dublin to London, detailing his experiences in real estate debt and the valuable lessons learned along the way.

They discuss the unique aspects of the UK market, the shift from bank-dominated lending to increased participation by insurance companies, and the impact of recent market dislocations. Martin explains how insurance companies are well-positioned to capitalize on current opportunities in commercial real estate lending, emphasizing the benefits of a conservative, investment-grade approach.

Tune in for an insightful conversation on the evolving landscape of commercial real estate lending, the role of insurance in this space, and the promising opportunities that lie ahead. Whether you're an experienced investor or new to the industry, this episode offers valuable perspectives and practical insights.

Episode 206: Investing Opportunities in COIN with TC Wilson of The Doctors Company

In this episode of the InsuranceAUM.com podcast, host Stewart Foley is joined by TC Wilson, Chief Investment Officer of The Doctors Company, to discuss the California Organized Investment Network (COIN). TC shares his impressive background, from being an academic All-American football player at Hampden-Sydney College to his current role as CIO at The Doctors Company.

They delve into the mission and history of COIN, its impact on California's underserved communities, and the benefits for insurers investing in COIN-qualified strategies. TC also highlights the rigorous vetting process of COIN and the legislative changes that have expanded investment opportunities.

Tune in for an engaging conversation that provides valuable insights into the role of COIN and the importance of prudent investment in socially impactful projects.

Episode 205: Direct Lending with Fidelity's David Gaito

In this episode of the InsuranceAUM.com podcast, host Stewart Foley sits down with David Gaito, Head of Direct Lending at Fidelity Investments. David shares his journey from growing up in Pittsburgh to leading Fidelity's direct lending business, emphasizing the importance of working with sophisticated insurance investment professionals.

They discuss the rise of direct lending, the unique challenges and opportunities in the market, and why Fidelity chose to build its direct lending platform from scratch. David provides insights into the regulatory landscape, the importance of scale, and the future of direct lending, particularly in relation to insurance asset management.

Tune in for a deep dive into the intricacies of direct lending and learn why this market is attracting so much attention from sophisticated investors.

Episode 204: Esoteric ABS and the Evolution of Insurance Asset Management

In this episode of the InsuranceAUM.com podcast, host Stewart Foley is joined by Kerry O’Brien, Head of Insurance Portfolio Management at Insight Investment, and Richard Talmage, CFA, Portfolio Manager at Insight Investment. The conversation dives into the evolution of insurance asset management and the burgeoning asset class of esoteric ABS.

Kerry shares insights into her extensive career, the growth of Insight Investment, and the current challenges and opportunities facing insurance asset managers. She emphasizes the sophistication and diversity of today’s insurance portfolios and how Insight's technology and expertise support these complex needs.

Rich discusses the rise of esoteric ABS, detailing the unique opportunities it presents for insurance portfolios. He highlights the importance of relationships and deep institutional resources in underwriting these assets, making a compelling case for their inclusion in diversified portfolios.

Tune in to learn about the evolution of insurance asset management, the benefits of esoteric ABS, and how Insight Investment is leading the charge in this dynamic field.

Episode 203: Shifts and Opportunities in Insurance Asset Allocation with Invesco’s Pete Miller

In this episode of the InsuranceAUM.com podcast, host Stewart Foley welcomes Pete Miller, CFA, FSA, Head of Insurance Solutions, Multi-Asset Strategies at Invesco. They delve into the intricacies of strategic asset allocation for insurance companies, touching on Pete's extensive experience in the industry and his insights on current trends.

Pete shares his background, from growing up in Omaha, Nebraska, to his early career at The Hartford, where he transitioned from traditional actuarial roles to investment management. His journey offers valuable lessons on adaptability and the importance of asking questions.

The discussion highlights the increasing trend toward alternative assets and the opportunities within private credit and commercial real estate debt. Pete also sheds light on global differences in insurance asset management, particularly the advanced ESG integration in Europe and Asia compared to the US.

Tune in for an engaging conversation on the evolving landscape of insurance investments and the strategies that can help insurers navigate this complex environment.

Due Dilly Episode 3: Mutual of Omaha and Shelter Growth Capital – A Partnership in Residential Loan Investing

In this episode of the InsuranceAUM.com podcast, John Patin steps in as the guest host and welcomes two distinguished guests: Justin Mahoney, co-founder and senior portfolio manager of Shelter Growth Capital Partners, and Bryan Lentz, director of public and private structured securities at Mutual of Omaha Insurance Companies.

They dive into the intricacies of residential credit within insurance portfolios, exploring the evolution of the asset class, and its unique risk-reward dynamics. Justin and Bryan share insights into their organizations, how they evaluate residential credit opportunities, and the strategic partnership between Shelter Growth and Mutual of Omaha.

The conversation touches on the role of direct lending in residential credit, the macro and micro perspectives on the housing market, and the importance of customizable solutions for insurance companies. The episode concludes with engaging personal insights from Justin and Bryan, adding a touch of personality to the in-depth discussion.

Episode 201: CMLs in 2024: A repriced market with attractive opportunities?

In this episode of the InsuranceAUM.com Podcast, Stewart Foley hosts Greg Michaud, Head of Real Estate Finance at Voya, for an in-depth discussion on commercial mortgage loans (CMLs) in 2024. They explore whether the repriced market offers attractive opportunities. Greg shares insights from his extensive background in real estate finance, including his early career as a draftsman and appraiser, and his current responsibilities overseeing the sourcing, underwriting, and management of commercial real estate loans at Voya.

The conversation delves into the current state of the office sector, highlighting the stress due to oversupply and liquidity issues, particularly in urban areas. Greg discusses the differences between urban and suburban office properties, noting the potential for suburban offices to be repurposed into mixed-use developments. They also address challenges in the multifamily sector, including rising expenses and interest rates, and emphasize the importance of experienced borrowers in successfully navigating the market.

Greg shares his views on where the best opportunities lie in the real estate market, pointing to preferred equity, mezzanine, and rescue capital for distressed apartments as particularly promising areas. They also discuss the attractiveness of secondary and tertiary markets, the evolving industrial sector, and the potential for open-air storage solutions. Greg concludes with key takeaways for investors, emphasizing the importance of high-quality assets and experienced operators in capitalizing on current market conditions.

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