Insights

Private Credit has moved to the forefront of market discussions, often associated with concerns over liquidity, asset quality and underwriting standards, as well as investor behaviour.Yet behind the headlines lies a heterogeneous asset class whose risks and dynamics demand further investigation.Importantly, not all Private Credit segments face the same challenges, nor do they carry the same risk profile. Recent scrutiny has focused on redemption risk from so called “semi-liquid” funds, further exacerbated by growing concerns around the asset class exposure to the software sector.This analysis aims to cut through the noise and restore perspective. It also assesses the specific implications for insurance companies and banks on both sides of the Atlantic given the specific roles they play in the Private Credit value chain.

After more than a decade characterised by low, or even negative, interest rates, the sharp rise in bond yields has profoundly transformed the investment landscape for institutional investors. For insurers in particular, this new landscape presents both an opportunity – to rebuild returns – and a challenge, given increasingly stringent prudential, accounting and balance sheet management constraints.Against this backdrop, repackaged structured products, and in particular SPIRE-type structures, have seen a marked resurgence in interest since 2024, from institutionnel investors and namely insurers. Far from being mere tactical instruments, these products are gradually establishing themselves as genuine financial engineering tools serving sophisticated asset-liability management.

Every month, find out all about the sustainable market bonds news in our newsletter "MySustainableCorner".

Quarterly publication / April 2026

Each month we share the conclusions from the monthly strategy investment committee which provides a summary of Ostrum AM's views on the economy, strategy and markets.

For the seventh episode of Transitions, we explored the mounting role of ESG data in shaping financial analysis and guiding investment strategy, with Sophie Palagos, Credit & Sustainability Analyst and Marc Estagnasié, ESG strategist, Cross-functional projects & Data.

Every month, find out all about the sustainable market bonds news in our newsletter "MySustainableCorner".

Each month we share the conclusions from the monthly strategy investment committee which provides a summary of Ostrum AM's views on the economy, strategy and markets.

European banks have reported robust 2025 earnings. European bank bonds have been strongly supported by these solid fundamentals and favorable technical factors, leading to a significant compression of spreads, especially on subordinated debt.We believe the current fundamental momentum will carry through into 2026. We anticipate net interest income growth potential from the second half of the year, once the central bank rate cuts implemented in 2025 have been largely absorbed by banks.Consequently, we retain a positive outlook for the banking sector. We believe banks are favorably positioned within an economic landscape marked by, on one hand, a relatively stable macroeconomic baseline scenario, and on the other, an environment replete with numerous underlying risks.Furthermore, despite stretched valuations and a riskier context, the decline in issuance and the sector's resilience should limit downside risk and support carry. Opportunities remain through mergers and acquisitions, regulation (AT1), and lower capital structure investments.

Every month, find out all about the sustainable market bonds news in our newsletter "MySustainableCorner".

Each month we share the conclusions from the monthly strategy investment committee which provides a summary of Ostrum AM's views on the economy, strategy and markets.