We analyze the impact of proposed changes in the National Association of Insurance Commissioners’ capital charges on the fixed income investment portfolios of U.S.-domiciled life insurers. Starting from an estimated current fixed income allocation for the sector, we discuss possible shifts in the optimal allocation that would result from the proposed changes in risk weights, and their possible market implications.

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Chitrang K. Purani

Portfolio Manager, Financial Institutions

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Three Key Takeaways From PIMCO’s Cyclical Outlook: Flatlining at The New Neutral

Following the Federal Reserve’s pivot to patience, we believe U.S. short-term interest rates are now anchored in The New Neutral. Global growth keeps synching lower, but may experience a soft landing later this year if China’s economy stabilizes and trade tensions ease. However, political uncertainties suggest a cautious overall approach to investing. These are three key conclusions we discuss in detail in our latest Cyclical Outlook, “Flatlining at The New Neutral.”

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