Total return bonds

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.

Quarterly publication / April 2026