In this episode of the InsuranceAUM.com Podcast, host Stewart Foley is joined by Bill O'Neill, Principal Senior Portfolio Manager at Income Research and Management, to explore the often underappreciated yet highly versatile world of convertible bonds. Bill shares his deep knowledge of the asset class, explaining the hybrid nature of convertible bonds that offer bond-like characteristics with the potential for equity-like returns. The conversation delves into the history and structure of convertible bonds, highlighting their unique appeal in today's higher interest rate environment. Bill discusses the resurgence of the investment-grade convertible bond market, driven by factors such as the need for diversified capital access, favorable changes in regulatory accounting standards, and the current economic climate. The discussion also touches on the specific advantages convertible bonds offer to insurance companies, particularly the blend of downside protection and upside potential they provide. Bill details Income Research and Management's long-standing experience managing convertible bonds, emphasizing their focus on "bond-like" convertibles that align well with the conservative, income-oriented investment strategies often favored by insurers. This episode offers valuable insights for insurance asset managers looking to explore the potential of convertible bonds in a diversified portfolio, especially given the evolving financial landscape and the renewed growth in this asset class.

In this episode of the InsuranceAUM.com podcast, host Stewart Foley is joined by Kevin Farley, Managing Director and Structured Credit Portfolio Manager at Post Advisory Group, to dive deep into the world of collateralized loan obligations (CLOs). Kevin shares his insights on the evolution and scalability of the CLO market, particularly in the primary and secondary markets, highlighting how the landscape has changed post-Great Financial Crisis (GFC). The conversation explores the impact of regulatory changes, such as the rollback of the risk retention requirement under the Dodd-Frank Act, and how these have influenced market dynamics and investor behavior. Kevin also sheds light on the resilience of CLO structures amidst potential economic stress, discussing the current state of defaults and the market's preparedness for an uptick in 2024. He touches on the growing interest in private credit, the differences between this and broadly syndicated loans, and the factors driving this shift. Wrapping up the discussion, Kevin shares his outlook for 2024 and the key takeaways for insurance investors considering CLOs as a part of their portfolio strategy.

In this episode of the InsuranceAUM.com podcast, host Stewart Foley sits down with Eric Cooperstrom, Managing Director of Impact Investing in Natural Climate Solutions at Manulife Investment Management, to explore the intersection of timberland investments and impact investing. Eric shares his journey from traditional finance to leading Manulife’s forest climate strategy, offering listeners a unique perspective on how sustainable timber and agricultural investments can align with broader environmental goals. The discussion covers the growing importance of carbon markets, particularly the role of forest carbon in both compliance and voluntary markets, and how these markets are evolving in response to increasing global focus on climate change. Eric also dives into the strategic approaches Manulife employs to balance timber and carbon value, emphasizing the importance of high-quality, high-integrity carbon credits. He explains how insurance companies can leverage these investments as both a portfolio diversifier and a climate hedge, potentially offsetting liabilities linked to climate risks. Whether you're familiar with timberland investments or new to the concept, this episode provides valuable insights into how natural climate solutions can contribute to sustainable, long-term investment strategies.

In this episode of the InsuranceAUM.com podcast, host Stewart Foley speaks with Cindy Beaulieu, Chief Investment Officer of Conning's North American operations, about the impact of higher interest rates and increased market volatility on insurance investors. Cindy, a seasoned expert in insurance asset management, shares her insights on how the sudden shift to a high-inflation, high-yield environment has affected insurance portfolios and how Conning has helped clients navigate these changes. She emphasizes the importance of strategic asset allocation, diversification, and staying calm during periods of uncertainty. Cindy also discusses how insurers are reacting to higher yields, including the potential for taking less risk while still achieving desirable returns. She highlights the continued importance of non-traditional asset classes like CLOs and esoteric ABS in diversified portfolios and explains how Conning’s holistic approach to insurance asset management, including their capabilities in structured securities, investment-grade corporates, and more, helps clients manage both risks and opportunities in a changing market. The episode wraps up with Cindy’s thoughts on the outlook for 2024, where she foresees continued challenges but also opportunities in structured securities and investment-grade corporates. She also shares valuable advice about seizing opportunities in crises and her wish to have lunch with Warren Buffett, appreciating his long-term success and ability to adapt to market cycles.

In this episode of the "Due Dilly" podcast, host Stewart Foley, CFA, dives into the world of CLOs with Joe Eppers, Executive Vice President and Chief Investment Officer at Selective Insurance Group, and Tom Majewski, Founder and Managing Partner of Eagle Point Credit Management. As part of our series bringing insurance CIOs and asset class experts together, this conversation explores the current state of the credit market, the intricacies of CLO investments, and how insurance companies can navigate this complex landscape. Joe and Tom discuss the relative value across the CLO capital structure, the impact of rising interest rates, and the potential regulatory changes that could reshape the industry. With a focus on both the granular details and the broader market dynamics, this episode provides a wealth of knowledge for anyone interested in understanding the nuances of CLOs and their role in insurance portfolios.

In this episode of the InsuranceAUM.com podcast, host Stewart Foley, CFA, sits down with Emily McKinley, Head of Institutional ETFs and Models at Invesco, to explore the growing use of ETFs by insurance companies. Emily provides an in-depth look at how ETFs have evolved over the past 30 years and discusses the significant role they play in insurance portfolios today. From enhancing liquidity and operational efficiency to offering access to harder-to-reach markets, ETFs have become indispensable tools for insurers navigating complex market environments. Emily also shares her insights on the regulatory advancements that have shaped the ETF landscape, particularly for insurers, and explains how ETFs can help insurance CIOs manage portfolio challenges. This conversation sheds light on the intricacies of ETF trading, the advantages of fixed income ETFs, and the exciting future of ETF usage in the institutional space. Whether you're new to ETFs or looking to deepen your understanding, this episode offers valuable knowledge and practical takeaways.

In this Executive Spotlight episode of the InsuranceAUM.com podcast, host Stewart Foley, CFA, sits down with Brian Roelke, President and Chief Investment Officer of Kuvare Asset Management (KAM). Brian shares his journey from growing up in Montclair, New Jersey, to his early days as a caddy, and ultimately to leading a rapidly growing investment management firm. He discusses the unique path that led him from TIAA to Kuvare, the importance of a strong investment culture, and the exciting challenges of building an investment team during the pandemic. Brian provides insight into KAM's strategy, focusing on investment-grade private credit and the innovative approach they’ve taken in managing their clients' portfolios. He also touches on the changes in the market since he joined KAM in 2020, particularly in light of rising interest rates, and highlights new opportunities in areas like sports investments and the launch of a broadly syndicated loan management platform. Whether you’re interested in private credit, investment strategy, or leadership in asset management, this episode offers a deep dive into the factors driving success at KAM.

In this episode of the InsuranceAUM.com podcast, host Stewart Foley, CFA, delves into the world of net lease investments with Sharon Kilmer, Managing Director on TPG Angelo Gordon’s Net Lease Real Estate team. Sharon, who brings deep experience in both credit management and fixed income portfolio management, provides an insightful overview of net lease assets and their growing significance in the real estate market. She explains the nuances of net leases, emphasizing why industrial properties, particularly mission-critical ones, make attractive investments for insurance companies seeking stable, long-term cash flows. Sharon also discusses the benefits of net lease investments as a bond substitute, highlighting their role as a volatility dampener in a portfolio. Whether you're looking to understand the fundamentals of net leases or seeking strategies to align long-duration assets with insurance liabilities, this episode offers valuable perspectives on the evolving landscape of real estate investing.

In this episode of the InsuranceAUM.com podcast, host Stewart Foley, CFA, is joined by Mary Lukic, Head of Tax-Advantaged Equity at Northern Trust Asset Management. Mary provides an in-depth overview of tax-advantaged equity (TAE) strategies, explaining how these approaches offer insurance companies a valuable tool for managing gains and losses while maximizing after-tax returns. With over 35 years of experience in running tax-managed strategies, Northern Trust has become a leader in customizing portfolios to meet the specific tax objectives of insurers. Mary highlights the flexibility and customization available through TAE, how it performs in volatile markets, and its role in creating tax alpha. Whether you're an insurance professional looking to optimize your equity investments or simply curious about tax strategies, this episode delivers actionable insights and valuable knowledge.

In this episode of the InsuranceAUM.com podcast, host Stewart Foley, CFA, is joined by Matthew Bass, Head of Private Alternatives at AllianceBernstein, to explore the investment opportunities emerging from recent disruptions in the U.S. banking sector. Matthew shares his expert insights into the ongoing trend of bank disintermediation, which has been accelerated by events like the Silicon Valley Bank collapse. He explains how these changes are shifting the financial landscape, particularly in private credit and non-bank lending, creating unique opportunities for insurance companies to step in as key players. Matthew also discusses the importance of strategic partnerships between banks and asset managers, highlighting how insurers are well-positioned to benefit from these collaborations. With their long-term investment horizons and stable capital, insurers can provide the diversified funding that banks increasingly need. This episode offers valuable perspectives for insurance investment professionals looking to navigate and capitalize on the evolving private markets amid banking sector challenges.