Most asset classes have earned strong total returns year to date and could continue to rally through year-end.
Investors may view emerging markets as particularly vulnerable to volatility, since the asset class typically sees outflows during times of market stress. However, emerging markets are not all one and the same.
Considering the current macroeconomic environment with little expectation for a rise in interest rates in the short term, insurers may want to consider a more dynamic approach to lock in spread levels.
Keving Kearns, Portfolio Manager and Senior Derivatives Strategist at Loomis, Sayles & Co, discusses the diversification and drawdown management benefits arising from balancing interest rates and credit risk through a multi-asset credit strategy.