Private placement securities may offer insurers opportunities to enhance portfolio income, especially when compared to public securities of similar quality and duration.
Cindy Beaulieu, Conning’s CIO for North America, and John Petchler and Sam Otchere from Conning’s Private Placements team review the asset class in the Viewpoint “Private Placements: Aiming for Greater Yields, Downside Protection and Customized Cash Flows.”
The authors note that, along with the potential yield premium, private placements are often rated investment grade and offer stronger investor protections than are typically available on public securities of similar rating and maturity. They also discuss how private placements may help insurers customize maturities to match liabilities.