![Institutional Indexing](/content/dam/invesco/us/en/images/landing-pages/LNDG-HRO-Invesco-Insurance-Podcast.jpg)
Invesco Insurance Podcast
Listen to the latest insurance investment insights from our experts.
In our Q2 2024 edition of Alternative Opportunities, we continue to cover views on a variety of private asset classes from Invesco Solutions and our partner firms. Within this piece, we’ll present a framework for analyzing across alternative markets to help inform insurers’ investment decisions.
We continue to believe the current environment will lead to improved deal activity even in light of significant capital being allocated to the space. As such, insurers who have ramped up their private credit allocations in recent years should consider staying the course. Our anticipation of an improved opportunity set within distressed and special situations debt means insurers may see more opportunities in their private credit bucket, which enhances capital-efficiency. Commercial real estate debt is anticipated to remain highly attractive in both economic and capital-adjusted terms as well.
Broadly speaking, we encourage insurance clients to be selective in their private equity allocations in the current environment. Strategies that rely heavily on leverage may struggle to deliver strong risk-adjusted returns in the current interest rate environment.
Given our upgraded view from underweight to neutral, now may be an opportune time to reconsider private real estate allocations. While the asset class remains challenged, we believe we are close to the bottom for valuations. As long-term investors, insurers allocating to the space now may benefit from attractive opportunities, particularly in light of a moderating interest rate backdrop.
Invesco Insurance Podcast
Listen to the latest insurance investment insights from our experts.
Investment outlook 2024: Balancing growth and inflation
Western developed economies may see ongoing disinflation in 2024, with an economic slowdown in the first half and a recovery in the second half.
2024 long-term capital market assumptions
We share our outlook and the methodology behind our 2023 long-term capital market assumptions.
Get the latest information and thought capital from Invesco’s team of experts.
NA3703664
All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. This is being provided for informational purposes only, is not to be construed as an offer to buy or sell any financial instruments and should not be relied upon as the sole factor in any investment making decision. This should not be considered a recommendation to purchase any in-vestment product. As with all investments there are associated inherent risks. This does not constitute a recommendation of any investment strategy for a particular investor. Investors should consult a financial professional before making any investment decisions if they are uncertain whether an investment is suitable for them. Please read all financial material carefully before investing. Past performance is not indicative of future results. The opinions expressed herein are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals.
This link takes you to a site not affiliated with Invesco. The site is for informational purposes only. Invesco does not guarantee nor take any responsibility for any of the content.