The Structural Rise of Structured Products: Parallel Growth Across Insurers and Mutual Funds
The Structural Rise of Structured Products: Parallel Growth Across Insurers and Mutual Funds
Structured products have moved steadily from the margins toward the center of fixed-income portfolio construction for both insurers and mutual fund managers. Over the past decade, allocations have risen consistently, driven by relative-value advantages, capital efficiency, and growing demand for predictable, cash-flow-generating assets.
Insurers are increasingly relying on senior structured credit to enhance yield while navigating tighter capital constraints and liability-driven portfolio needs. At the same time, active managers are reallocating from traditional corporate exposure toward structured sectors to access incremental spread and greater portfolio flexibility.
As demographic trends reinforce demand for income-oriented strategies, structured products are playing a more prominent role in how fixed-income portfolios are built across investor types.
Insurers are increasingly relying on senior structured credit to enhance yield while navigating tighter capital constraints and liability-driven portfolio needs. At the same time, active managers are reallocating from traditional corporate exposure toward structured sectors to access incremental spread and greater portfolio flexibility.
As demographic trends reinforce demand for income-oriented strategies, structured products are playing a more prominent role in how fixed-income portfolios are built across investor types.
Riding the Growth Wave Into 2025
© Conning Holdings Limited 2025. All Rights Reserved.Securities are offered through Conning Investment Products, Inc., One Financial Plaza, Hartford, CT 06103 an affiliated broker-dealer. Member of FINRA / SIPC.
