InsuranceAUM

Agency mortgage-backed securities can offer highly liquid exposure with credit characteristics comparable to U.S. Treasuries, but the asset class carries its own set of risks and opportunities. Tyler Patla, Senior Vice President, Managing Director of Core Fixed Income and Director of Agency Mortgages at Pioneer Investments, a Victory Capital Management franchise, discusses prepayment behavior, convexity, liquidity, portfolio construction, and how investors are compensated for taking mortgage-specific risk.   The conversation also explores why Tyler views agency MBS as a security selection asset class, how borrower characteristics can influence prepayment behavior, and where active management may create alpha. He also shares how machine learning and AI are expanding mortgage analysis and could reshape both security selection and the mortgage origination process over time.

Bill O'Neill, CFA, Senior Portfolio Manager and Co-Director of Portfolio Management, and Ginny Schiappa, CFA, Senior Portfolio Manager, at Income Research and Management (IR+M), join host Stewart Foley to discuss the forces reshaping US credit markets and the implications for insurance investors.   As AI infrastructure investment accelerates, traditional distinctions between investment grade and high yield are becoming increasingly nuanced. Bill and Ginny examine the growing financing needs of data centers, changing credit quality across rating categories, and the influence of passive investment flows on bond pricing. They also explore the evolving role of US Treasuries and how investors can assess risk beyond conventional credit ratings.   The conversation also highlights opportunities beyond traditional corporate bonds, including asset-backed securities, commercial mortgage-backed securities, and specialized credit structures. Bill and Ginny share their perspectives on disciplined security selection, portfolio diversification, managing concentrated exposures, and how technology and AI are supporting investment research and portfolio management at IR+M.

Jennifer Powers, Principal and Head of Infrastructure Credit at Eagle Point Credit, joins the InsuranceAUM Podcast to discuss the evolution of infrastructure credit and the growing opportunity across the middle market. She explains how the asset class has expanded beyond traditional infrastructure into digitalization, decentralization and decarbonization, creating opportunities across data centers, power, battery storage, grid modernization and other areas tied to the energy transition.   Jennifer also explores why smaller and middle market transactions can offer a differentiated opportunity set, the role of structuring and active portfolio management in protecting credit outcomes, and how experienced lenders can identify opportunities that may be overlooked by larger funds and traditional capital markets.   The conversation also turns to the rapid buildout of AI infrastructure, including growing demand for power, water, equipment and connectivity, and why investors need to remain disciplined as increasing amounts of capital enter the space.

As private credit enters a more demanding phase, Rick Miller, Group Managing Director and Chief Investment Officer of the TCW Private Credit Group, discusses how middle market lending has evolved and why underwriting discipline, portfolio management, and principal preservation are becoming increasingly important.   The conversation also covers concentration risk, software exposure, sponsor-backed lending, and the importance of manager selection. Rick explains how TCW approaches senior secured lending, manages underperforming credits, and structures private credit solutions around the needs of insurance company investors.

Jason Gelberd, Partner, Chief Operating Officer and Co-Head of Direct Lending, and Tim Kim, Partner and Head of Specialty Finance at Manulife Comvest Credit Partners, discuss what sits beneath the broad asset-based finance label, from collateral types and capital structure to first lien, second lien, and equity strategies.   The conversation also covers advance rates, duration, downside protection, fraud risk, cash controls, sourcing, underwriting, and portfolio monitoring. Jason and Tim explain why manager experience and structural discipline matter, and what investors should focus on when evaluating ABF opportunities.

Artificial intelligence is reshaping the investment landscape across technology, infrastructure, and credit markets, creating both new opportunities and new sources of risk. Jeff Hobbs, Chief Investment Officer for Fixed Income at Voya Investment Management, discusses how investors can think about the AI ecosystem across chips, data centers, power infrastructure, hyperscalers, and public and private credit.   The conversation also examines where risk may be underpriced, how correlations can build across insurance portfolios, and why underwriting discipline, lease counterparties, and financing structures matter. Jeff also shares his perspective on duration, relative value, and how insurers can position portfolios as AI-driven capital spending continues to expand.

Mark Jochims, Head of European Private Credit at Morgan Stanley Investment Management, joins the InsuranceAUM.com Podcast to explore the evolution of European private credit and the expanding role of direct lenders across the region.   Mark explains how Europe differs from the U.S. private credit market, including its more fragmented banking system, slower pace of bank disintermediation, different borrowers and jurisdictions, and distinct supply-and-demand dynamics. He discusses why Europe should not necessarily be viewed as better than the U.S., but as a potentially differentiated source of portfolio diversification for insurance investors.   The conversation also examines the structure of direct lending, the downside protection offered by senior positions in the capital structure, and why private credit can serve as an income-generating diversifier within an insurer portfolio. Mark shares his perspective on evaluating AI exposure from the bottom up, the challenges of distinguishing among private credit managers as lending becomes increasingly competitive, and why sourcing and selectivity remain critical to long-term performance.   Mark also looks ahead at the European market, where bank lending still represents a significant share of financing and continued disintermediation may create further opportunities for private lenders. He discusses what insurers should consider when evaluating not only investment portfolios, but also the governance, ownership and stability of the managers behind them.

Pranay Subedi, Associate Portfolio Manager in Fixed Income at T. Rowe Price, examines the health of the private credit market and how risk has shifted since the Global Financial Crisis. The discussion covers the evolution of BDCs and other private credit vehicles, why credit risk has migrated away from bank balance sheets, and whether today’s system may be more resilient than the pre-GFC framework.   The conversation also explores recent volatility in private credit, including redemption pressure in non-traded BDCs, liquidity risk, software exposure, and the potential impact of AI disruption. Pranay explains how he evaluates managers, why underwriting quality and funding structures matter, and what investors should watch as credit losses begin to normalize and the market heads into 2027.

Margaret McKnight, Partner and Head of Portfolio Solutions at StepStone Real Estate, and Brendan MacDonald, Partner and Chief Operating Officer at StepStone Real Estate, discuss why the current real estate reset may be creating an attractive opportunity set for secondaries investors. They explore how higher rates have pressured valuations, leverage, liquidity, and transaction activity, while increasing demand for GP-led secondaries, recapitalizations, and other capital solutions.   The conversation also covers real estate’s role in portfolio diversification and inflation protection, the impact of debt maturities and aging fund structures, and how StepStone uses global manager relationships, data, and underwriting capabilities to identify opportunities across markets and property types. They also discuss how insurance investors can think about accessing the asset class across different risk and return profiles.

David Ross, Managing Director and Head of Private Credit at Northleaf, joins the InsuranceAUM Podcast to discuss the current state of private credit and how investors are navigating a market shaped by volatility, elevated base rates, changing capital flows and new risks associated with artificial intelligence. He explores why underlying portfolio performance remains resilient overall, where pockets of stress are emerging and how investors should evaluate returns on a loss-adjusted basis.   David also discusses how Northleaf is assessing AI risk across individual companies and industries, why diversification and selectivity remain critical, and how periods of market dislocation can create opportunities for patient capital. The conversation also examines the evolving relationship between insurers and private credit managers, including the growth of customized mandates, co-investments and bespoke capital partnerships.   Looking ahead to 2027, David shares why disciplined underwriting, active risk management and a focus on underlying company fundamentals will remain central to navigating the next phase of the private credit market.