BlackRock recently established a European Infrastructure Debt investment team in Europe to meet demand from insurers seeking long-dated and predictable income at attractive levels. In addition, BlackRock also expects increased inflows into areas such as opportunistic credit, real estate debt (senior and mezzanine), social housing, high-yielding bank loans and equity dividend strategies. Insurers are also expected to begin to look beyond high-yield bonds and find attractive opportunities in leveraged loans and collaterized loan obligations.“Insurers may look to growth and higher investment returns in emerging markets in order to increase and diversify revenue,” said Mr. Lomas. In addition to emerging market sovereign hard currency debt, BlackRock expects demand for emerging market corporate debt and local currency denominated debt to increase.
BlackRock: Insurers Face Fixed Income Dilemma
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