The US state's biggest retirement fund has nearly trebled its target allocation to private credit and is adding private equity and real assets too. It is also eyeing other ways to boost returns.
Asian banks are in a stronger position now compared to the 2008 crisis; however, the longer it takes for economic recovery post Covid-19, the greater the likelihood of consolidation within the sector. Areas of concern include asset quality, profitability and the pace of digitisation. Operational and financial resilience will be the keys to success.
Regional life insurers will seek to reweigh their portfolios to seek out sufficient returns in the low rate environment, reduce duration gaps and adapt to new capital rules.
Asian investors found fixed income appealing in the second quarter, but selective equity allocation might be a better bet for the rest of the year, say active investing experts.
The CIO of Swiss insurer Zurich and CEO of Swedish pension fund Alecta flag their growing corporate debt concerns and outline their response strategies.
Very few asset owners in Asia adopt environmental, social and governance principles in their fixed income portfolios. Credit rating agencies could play a key role in changing that.