Investment Grade CLO Tranches for Insurers – A Relativist’s Guide
Investment Grade CLO Tranches for Insurers:
As interest rates remain elevated, insurers have opportunities to earn greater yields in an asset class that has historically exhibited less default risk than corporate bonds.
In our latest Viewpoint, “Investment Grade CLO Tranches for Insurers: A Relativist’s Guide,” we explain how the floating-rate debt tranches of collateralized loan obligations (CLOs), particularly tranches with investment grade (IG) ratings (AAA-BBB), are attracting the interest of insurance companies.
With a typically significant allocation to fixed income, insurers would be well-advised to consider IG CLO tranches given their compelling characteristics:
- Higher yields than similarly rated corporate debt
- Improved market liquidity
- Structural protections that support capital preservation.
Conning and our affiliate Octagon Credit Investors have a decade of experience working together to help insurers access and manage investments in CLOs.
In our latest Viewpoint, “Investment Grade CLO Tranches for Insurers: A Relativist’s Guide,” we explain how the floating-rate debt tranches of collateralized loan obligations (CLOs), particularly tranches with investment grade (IG) ratings (AAA-BBB), are attracting the interest of insurance companies.
With a typically significant allocation to fixed income, insurers would be well-advised to consider IG CLO tranches given their compelling characteristics:
- Higher yields than similarly rated corporate debt
- Improved market liquidity
- Structural protections that support capital preservation.
Conning and our affiliate Octagon Credit Investors have a decade of experience working together to help insurers access and manage investments in CLOs.
A Relativist’s Guide
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