In this episode of the InsuranceAUM.com Podcast, host Stewart Foley sits down with Kris Kraus, Portfolio Manager and Co-Head of Specialty Finance at PIMCO, to delve into the evolving world of asset-based lending and specialty finance. Kris shares his journey from growing up in Northern California to his current role at PIMCO, highlighting the unique aspects of insurance asset management.

The conversation covers the definition and scope of specialty finance, its rapid growth since the Global Financial Crisis (GFC), and why it remains a compelling investment opportunity. Kris explains the intersection of market forces that make specialty finance a secular trend rather than a fleeting opportunity. He also discusses the impact of regulatory changes, such as Basel III and CECL, on bank lending and how insurance companies can benefit from these shifts.

Stewart and Kris explore the intricacies of sourcing deals, the role of non-bank originators, and the importance of structuring investments to meet insurance-specific criteria. This episode provides valuable insights for insurance investors looking to navigate the specialty finance landscape and capitalize on the current market dynamics. Tune in for an in-depth discussion on the strategies and opportunities in asset-based lending for insurers.