![]() |
Aon has issued ‘Investment grade credit-based solutions - Capturing the opportunity’. This new paper explores the opportunities for pension schemes to incorporate global investment grade credit into their liability driven investment strategy to capture current high credit spreads, particularly the part of the spread relating to credit’s lower liquidity available in longer dated credit bonds. |
Kenneth Ettles, investment principal at Aon, said: “In the first few months of this year, investment grade corporate bonds succumbed to the economic and business pressures resulting from the COVID-19 virus and the dramatic slide in oil prices. However, analysing the situation more closely, we believe that most of the credit spread increases on bonds are due to their higher illiquidity rather than company default risk. “While it is possible that there may be some corporate casualties from the economic downturn, our view is that investment grade credit yields are currently attractive. This is particularly the case for longer term investors, such as pension schemes, who can benefit from the illiquidity premium as they would be buying now with the aim to hold corporate bonds to maturity.” The paper also examines the available options for pension schemes to incorporate this credit opportunity in their current investment strategy.
‘Investment grade credit-based solutions - Capturing the opportunity’ |
|
|
|
Calling all BPA analysts! | ||
North West / hybrid 50/50 - Negotiable |
Principal Actuary - Bermuda | ||
Bermuda - Negotiable |
Financial Planning & Analysis Actuary | ||
London/Hybrid - Negotiable |
Apply Your Doctorate to Technical Pri... | ||
Fully remote / nationwide / hybrid working options all available - Negotiable |
Senior Investment Manager | ||
London / hybrid - Negotiable |
P&C Consultant | ||
London / hybrid 3dpw office-based - Negotiable |
Senior Pricing Actuary | ||
London - £140,000 Per Annum |
Actuarial Pensions Manager | ||
Flex / hybrid 2-3 dpw office-based - Negotiable |
Financial Reporting in beautiful Bermuda | ||
Bermuda - Negotiable |
Principal Risk Analyst - island adven... | ||
Bermuda - Negotiable |
Make a difference within BPA Administ... | ||
North West / hybrid 50/50 - Negotiable |
GI Provisioning in the Public Sector | ||
London or Edinburgh / hybrid 3 dpw office-based - Negotiable |
Associate Actuary - Risk Transfer Con... | ||
Flex / hybrid 50/50 - Negotiable |
Assumptions Actuary | ||
London/Hybrid - Negotiable |
Senior Actuary | ||
London/Hybrid - Negotiable |
Senior Investment Trainee | ||
London or Edinburgh / hybrid 50/50 - Negotiable |
Pensions Manager | ||
Any UK office / hybrid 2 dpw office-based - Negotiable |
Actuarial Reserving Senior Manager | ||
London / hybrid - Negotiable |
Senior Actuarial Consultant – GMPe | ||
Any UK Office location / Hybrid working - Negotiable |
Senior Life Actuarial Consultant | ||
London / hybrid 3 dpw office-based - Negotiable |
Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.