Insight

Actively Building an Efficient Portfolio: One Bond at a Time

Insurance companies are the largest holders of corporate debt, making the management of these portfolios critical to their business. Often, they’re managed to closely resemble an index. We think there’s a better way.

Green tiles in a mosaic pattern.

6/25/2024

12 min read


Topic

Fixed Income

Key takeaways

  • Insurance companies are the largest holders of corporate debt, accounting for their greatest sector allocation and making them a key consideration for their business.
  • Portfolio construction within corporate bonds varies widely among property and casualty (P&C) companies — ranging from “index hugging” to acute concentration.
  • At Allspring, we believe in active management — where our research and active credit selection are leveraged for enhancing portfolio yield and total return.