Summary
This document is a guide that outlines alternative credit solutions available for insurers. It describes various strategies within the alternative credit spectrum, including investment-grade private corporate debt, infrastructure debt, collateralized loan obligations (CLOs), and leveraged loans. The guide explains how these strategies can provide insurers with opportunities to enhance yield, improve capital efficiency, and support asset-liability management (ALM) needs. It details the benefits of private and structured credit strategies, which offer meaningful spread advantages over public markets while maintaining defensive credit characteristics. The document also discusses the evolving landscape of private credit in Europe, highlighting its advantages such as wider spreads and stronger covenants. Additionally, it emphasizes the importance of adapting investment strategies to meet the challenges posed by current market conditions, including heightened volatility and compressed spreads. Overall, the guide serves as a comprehensive resource for insurers seeking to navigate the complexities of alternative credit investments.
