The Credit Clubhouse E6: The hottest topic in credit: insurance structuring with 9fin's Owen Sanderson
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Apr 10, 2025 Owen Sanderson, ABS Editor at 9fin, dives deep into the evolving world of credit markets and insurance structuring. He discusses how firms can tailor assets to fit insurance capital, revealing insights on emerging trends in private credit. Owen explores the risks associated with financial manufacturing, the dynamics between corporate credit negotiations, and the impact of regulatory changes in Europe. Expect intriguing market predictions and a fresh perspective on the relationship between insurers and asset managers!
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Insurance Capital's Growing Credit Role
- Insurance capital is an emerging dominant force shaping credit markets through insurer-owned by big asset managers.
- This integration enables permanent capital for asset origination, fostering extensive market influence overall credit areas.
Conflicts and Scale in Insurance Ownership
- Around 10-12% of US life insurance assets are held in insurer firms owned by alternative asset managers.
- Complex conflicts of interest may arise in these multi-fund, multi-role setups when credit conditions worsen.
Dominance Risks from Big Managers
- Large alternative asset managers aim to become price makers using their scale, influencing deal terms significantly.
- This driver could crowd out smaller funds and shift market pricing dynamics heavily towards dominant players.