Twelve Capital Insurance Bond Strategy - Market Update

The Insurance sector is currently one of the most attractive within Investment Grade

ZURICH, Switzerland, Aug. 29, 2023 (GLOBE NEWSWIRE) -- The insurance sector has performed well throughout the challenging first half of 2023, especially when compared to the broader corporate landscape. We believe it will continue to be resilient even if markets remain volatile in the second half of the year. The first half of 2023 was marked by troubles at US regional banks, the losses imposed to Credit Suisse AT1 holders that led many investors to be more cautious of these structures, as well as Central Banks continued increases in interest rates in order to tame inflation.

In a recessionary environment marked by higher interest rates, we believe that insurers are better positioned than other corporate sectors, and particularly corporates with higher leverage. Insurance companies have reported robust solvency positions and resilient earnings year to date, solidifying the sector's position as a defensive stronghold within the current economic environment.

Given current yields, Investment Grade bonds have become very attractive as an entry point, but also for many investors a way of repositioning their fixed income allocation given the more arduous macroeconomic trends. In Twelve Capital’s opinion and observing market tendencies, the insurance sector is currently one of the most attractive within Investment Grade.

For further information please contact Twelve Capital at:

+41 44 5000 120