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.

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.

For the sixth episode of Transitions, we discussed how companies are positioning themselves and making progress in relation to the necessary adjustments for the climate transition, along with the financing that this entails, with Suzanne Bourgault, ESG Strategist and climate expert and Sanda Molotcov, Head of Credit & Sustainability Research.

For the fifth episode of Transitions, we explored the transformative power of artificial intelligence and its effects on the asset management industry with Emmanuel Bourdeix, Director of Quantitative Investments and Research, and Philippe Waechter, Director of Economic Research.

The Ultra Short Plus Credit strategy, an SRI investment opportunity in the very short maturity corporate bond market.‘For investors looking for regular and attractive yields, very short-term credit can offer the right solution: Short-term euro rates are at their highest in 15 years.’Emmanuel Schatz, Portfolio Manager for the SRI Credit Ultra Short Plus strategy