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Structured Products: Our Best Ideas for Insurance Companies

Structured products have historically increased yield and credit quality while lowering volatility in an investment-grade fixed income portfolio. Now may be a good time for insurers to take advantage of this opportunity.

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3/31/2023

8 min read


Topic

Fixed Income

Key takeaways

  • The esoteric asset-backed securities (ABS) market has grown rapidly and now offers opportunity to increase income and diversification.
  • With fixed-rate esoteric ABS, investors may be able to lock in higher all-in yields, as we approach the peak of the interest rate cycle.
  • Esoteric ABS can be a great alternative to fundamentally challenged sectors such as commercial mortgage-backed securities.
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