![Emerging market investment grade debt: An attractive investment for insurers](/content/dam/invesco/emea/en/insights/EM_Currency_Insurers.jpg)
Fixed Income
Emerging market investment grade debt for insurance companies
At Invesco, we have extensive experience investing in EM debt and working with institutional clients to provide tailored solutions that can meet their exact requirements.
Since the global financial crisis, we continue to live in an increasingly low yield world. There has been hope that highly accommodative rates across the major developed economies would eventually drive a meaningful acceleration in global GDP and a normalised rate environment.
However, that has not happened. Instead, after seeing short term European rates hold in negative territory for several years and US rates at historical lows, we saw global rates driven even lower by the COVID-19 pandemic, which caused the most highly synchronised contraction in global GDP in modern history.
While uncertainty remains high, we do think it is reasonable to expect that this environment of extremely low interest rates is here to stay for at least the next few years.
Our latest white paper reveals how Emerging Market Investment Grade Debt could help you capture higher yields, while maintaining credit quality and capital requirements.
In this low-yielding environment, Emerging Market Investment Grade Debt could offer:
Emerging market investment grade debt for insurance companies
At Invesco, we have extensive experience investing in EM debt and working with institutional clients to provide tailored solutions that can meet their exact requirements.
Insurance Outlook 2024
2024 should mark the beginning of the end for reforms to Solvency II. Having fired the starting gun in February 2019, almost four years later the Commission, European Parliament and European Council are negotiating the final contours of the reform package.
A farming model for insurers: buy and maintain portfolio in fixed income
After having to endure many years of meagre yields in fixed income, and one of the worst total return performances in 2022, we believe 2023 presents us with as generous an outlook as we have seen in ten years.
The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.
Where individuals or the business have expressed opinions, they are based upon current market conditions, may from those of other investment professionals and are subject to change without notice.
This webpage is marketing material and is not intended as a recommendation to invest in any particular asset class, security or strategy.
Data as at 31 December 2020, unless otherwise stated.