Insurance Quick Takes: What's next for CLO risk charges?

The views expressed are those of the speaker at the time the video was produced. Other teams may hold different views and make different investment decisions. The value of your investment may become worth more or less than at the time of original investment. While any third-party data used is considered reliable, its accuracy is not guaranteed. For professional, institutional, or accredited investors only.

In Wellington Management’s latest Insurance Quick Take, Heald of Insurance Multi-Asset Strategy and Portfolio Manager Tim Antonelli breaks down the ongoing developments in the world of residual tranches related to collateralized loan obligations (CLOs) and the potential associated capital charges for US insurers. He recaps a recent NAIC meeting where the American Academy of Actuaries shared three major processes they have undertaken, the findings, and how these contribute to the future of CLOs. He also addresses when insurers can expect the next update and the potential impact to US life, P&C, and health insurers, including increased allocations to CLO equities in the future.