Bond Market Insights for Insurers

As the Fed and other central banks cut interest rates, financial conditions should ease and support the global economy and markets. Against this backdrop, we see a number of opportunities to potentially optimize fixed income allocations in insurance portfolios.  

Key takeaways for insurers

• Given our outlook for investment grade credit, now may be an opportune time to add on the margin.
• For those insurers willing to take modest FX risk, emerging market local debt represents an attractive opportunity to add portfolio yield.
• Life and P&C carriers alike may want to consider adding taxable munis given attractive yields and favorable technicals.