Episode 269: Asset-Based Finance (ABF): Building Resilient Portfolios for Insurers

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley, CFA, explores the growing market of private structured credit, also known as private ABF, with Poorvi Dholakia and Paul Carroll of MetLife Investment Management. They discuss how this asset class stands out through customized structures, enhanced covenants, and attractive yield premiums, making it an increasingly valuable component of insurance portfolios.

 

The conversation delves into the key factors driving the growth of private ABF since the 2008 financial crisis, the role of regulatory changes, and how scale and underwriting expertise create a competitive edge in this space. Risk considerations, such as credit, liquidity, and prepayment risk, are also examined, alongside the diversification benefits private ABF can bring to insurance investors.

 

Whether you're seeking a foundational understanding or advanced insights into private ABF, this episode offers a detailed look at its evolving role in meeting insurers' long-term objectives in today’s dynamic investment landscape.