The surge in yield premiums on US investment-grade bonds of insurers, triggered by concerns around exposure to private credit, is “overdone,” according to
In recent weeks, worries around artificial intelligence’s disruptive potential and risks in private credit deals have pushed US high-grade spreads wider, with the latter particularly affecting life insurers’ bonds, strategists including
“The market narrative centers on life insurers as a conduit for private credit risk and on the growing web of ownership and distribution ties between insurers and alternative asset managers,” the strategists said. ...