Opportunities Abound for Insurers in a Broader ABS Market
Insurance companies can enhance income and diversification by investing in ABS. With the Federal Reserve's easing cycle underway, now is the time to explore diverse ABS strategies with Allspring's expertise.
Key takeaways
- Our proprietary analysis of how insurance companies allocate to asset-backed securities (ABS) reveals that a surprising number have low weightings in the sector or are opting out altogether.
- ABS merits thoughtful consideration by insurers given the sector’s expansion and inherent income and diversification benefits.
- Under-allocation among insurers may be due to a lack of access to resources and expertise. A right-sized specialist ABS manager for this corner of the market is a good choice to consider.
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