Amid CLO Downgrades, Monitoring, Stress Testing, Robust Credit Analysis Key for Insurers
The growth in insurance company holdings of collateralized loan obligations (CLOs) may be of concern to some insurers as CLO downgrades increase. Even though the majority of insurer CLO holdings are of high quality, Conning and affiliate Octagon Credit Investors remind that ongoing oversight is key.
Gallant Steeds or One-Trick Ponies? The World's Central Banks React to a Pandemic
Conning’s Rich Sega examines the significant steps the world’s central banks have taken to help offset the economic calamities resulting from the COVID-19 pandemic. The banks have historically flooded markets with money in response to a crisis, but will it work this time? And what are the risks?
Pension Funded Status Tracker April 2020
The funded status of the average U.S. corporate defined benefit pension plan improved by 2% from 82% to 84%, between the beginning and end of April 2020. The asset portfolio increased in value as both the hedging and growth portfolios outperformed and liabilities also increased in value, mostly driven by a contraction in corporate bond spreads.
The Conning Commentary: Insurance Industry Responds to COVID-19 Pandemic
The May Conning Commentary offers an in-depth review of the COVID-19 pandemic business interruption creating challenges for insurance companies, and also reports on how property and casualty, life and annuity, and health insurers are faring during this period, as well as a look at what may be next.
MPL Market Update
The medical professional liability (MPL) insurance industry is seeing rising combined ratios, falling profitability less favorable reserve development, and also higher jury malpractice awards driven by “social inflation.” Conning’s Bill Burns notes that these factors suggest more trying times may be ahead for carriers in his video “Market Update,” created for the Professional Liability Underwriting Society 2020 Healthcare & MPL Symposium.
COVID-19 and Poor Countries: The Right Response
The world’s poorest countries affected by COVID-19 are in need of financial assistance, but Conning affiliate Global Evolution, a manager of emerging and frontier markets debt, argues that any solution must be driven by the principle of “crowding in” market-based finance through market confidence-building measures.
Credit Market Update: Fallen Angels, Fed Liquidity Programs and Conning’s Market Outlook
The COVID-19 pandemic has led to significant downgrades in U.S. corporate credit and a growing number of “fallen angels” – credits that were investment grade but have since fallen to a below-investment-grade rating. In a Q&A, Matt Daly, head of Corporate and Municipal Teams, discusses current credit market dynamics and opportunities for insurers that steer clear of fallen angels.
Conning Key Facts
“Key Facts” offers an overview of Conning’s assets under management, the experience and depth of our investment staff, and our array of capabilities to help you get a quick understanding of our company.
Conning ConnText Podcast: Quarterly Investment Outlook
The economic shutdown may have helped “bend the curve” in limiting greater contagion to COVID-19 but recovering from the shutdown will be another battle. The concerns and potential opportunities are discussed in our quarterly Conning ConnText podcast, hosted by Rich Sega, Global Chief Investment Strategist, and featuring Matt Daly, Head of Corporate and Municipal Teams, and Paul Norris, Head of Structured Products.
Stress Testing Scenarios for COVID-19
Conning is making available to our colleagues in the insurance and pension industries free of charge a selection from our GEMS® Stress Test Scenarios package, which includes historical scenarios with similarities to the current economic climate and a new scenario file based on 2020 YTD data.