Volatility Insights

Pushing on an Open Door
COVID-19 is Intensifying Long-term Macro Trends…Especially Debt Overhangs

How will the impact of the COVID-19 pandemic affect existing long-term trends? In some cases-deglobalization, populism and government debt levels-it will provide more momentum. How will policymakers tackle the debt overhang to keep it from spiraling out of control?

EM Investment Grade
Improved Fundamentals, Wider Spreads

With unprecedented policy support once again slashing developed-market government bond yields, insurance investors may be questioning emerging-market (EM) fundamentals, their relative spread valuations and whether they’re attractive based on risk-adjusted returns. Is EM investment-grade credit still worthwhile?

CRTs Price Dislocation
2020 Isn't 2008

CRTs have been a big headline so far this year. Michael Canter, Director of Securitized Assets and Peter Cornax, Senior Insurance Investment Strategist and Portfolio Manager – Credit, explain why 2020’s market turbulence isn’t a repeat of what we saw in 2008—and why we believe CRTs continue to possess solid fundamentals at attractive valuations.

Concentrated Global Growth: Concentrating on Quality Businesses
Global Core: Preparing for Unknown Unknowns
Italian Sovereign Debt

Italy's credit rating is under pressure. In an unscheduled downgrade on April 28, Fitch lowered the country's sovereign rating to BBB-minus, just a notch above junk.

Corporate Debt

Coronavirus-led economic uncertainty is forcing downgrades, defaults and fallen angels. Could this spell opportunity for credit investors?

Managing Risk Models in the Coronavirus Crisis

The spread of the COVID-19 virus has blindsided conventional risk models. By understanding what went wrong, investors can develop a more forward-looking approach to risk management that considers multiple scenarios for a highly uncertain market environment.

Introduction to Asia Credit

Arnaud Mounier, Head of Fixed Income Business Development—APAC, and Jenny Zeng, Co-Head of Asia-Pacific Fixed Income, examine how Asia credit’s characteristics and fundamentals could make it a more resilient, lower-beta credit play for insurers...

April 20, 2020

Flexibility Needed with Fallen Angels

AB’s analysis suggests that 8.5% of investment-grade issuers are now, based on their fundamentals, at risk of migration to high yield. According to Peter Cornax, Senior Insurance Investment Strategist & Portfolio Manager, that means insurers should consider...

April 13, 2020

Economic Perspectives
Credit Is Attractive, Though Risk Remains

Market dislocations created by the turmoil have made investment-grade credit substantially more attractive, Peter Cornax, Senior Insurance Investment Strategist & Portfolio Manager, explains...

April 6, 2020

Policy Progress Reinforces Economy, Markets

Peter Cornax, Senior Insurance Investment Strategist & Portfolio Manager, talks through the policy actions taken to support liquidity and make markets more likely to be driven by fundamentals than technical factors. He also looks at the implications for high-yield exposure.

March 30, 2020

Insurance Update
The Incoming Challenge

It was another wild week for investors, and policymakers stepped in to provide support to both economies and markets. These measures included a massive $2 trillion fiscal stimulus bill finalized by the US Congress on Friday...

March 23, 2020