Insurance Perspectives: Considerations for Investing in Emerging Market Debt

ABOUT US : Collapsed
INVESTMENT STRATEGIES : Collapsed
FINANCING SOLUTIONS : Collapsed
INSIGHTS : Collapsed

Insurance Perspectives: Considerations for Investing in Emerging Market Debt

Download PDF
Lara Devieux Sara Strauch Scott Moses Todd Howard
JAN 12, 2022

We recommend

China 2022 Outlook: Pain Thresholds Emerging

EMD: Trends, benefits, and opportunities

Explore Strategies

Insurance Asset Management

The How, What and Why to Invest

  • Fundamentals and valuations in Emerging Markets (EM) remain attractive relative to Developed Markets, with manageable risks to the downside 
  • For insurance companies, investing in EM debt can increase portfolio diversification and potentially generate attractive, capital-adjusted yields 
  • There are various strategies and structures available for insurance investors in EM debt, some of which provide local currency exposure without associated operational issues 
  • Insurance-specific considerations when evaluating the EM asset class and determining the appropriate strategy include appetite for risk and volatility, liquidity, currency exposure, and asset-liability management