Real Estate Investment Strategy Quarterly – Our Outlook and Forecasts for 2022

MetLife Investment Management’s (MIM) real estate research team provides updated views on relative value in the commercial real estate space, including updated property price forecasts, and considerations for investors who believe inflation may not be transitory.

Investing in Sustainable Private Credit

This article transcribes a roundtable discussion of sustainable private credit. The Q&A format paper discusses topics that include deal sourcing across geographies, the role and significance that sustainable investing plays in MIM’s origination, and the inputs used to qualify sustainable metrics.

Balance-Sheet Normalization and the Next Recession

We believe the Fed’s balance sheet normalization carries underappreciated risks as the assumption of a benign balance sheet runoff is dependent on a single historical example in 2017-2019. We expect elevated market volatility as the balance-sheet normalization process takes place.

Insurance Perspectives: Considerations for Emerging Market Debt - The how, where and why to invest?

The current global market environment is unique, with investors searching for yield and questioning the funding dynamics of governments and corporates around the world. We believe fundamentals and valuations within Emerging Markets (EM) remain attractive relative to Developed Markets. For insurance companies, investing in EM debt can increase portfolio diversification and generate attractive capital-adjusted yields, and there are various strategies and structures available for insurance investors.

MIM Cuts to the Chase Podcast Series: The Outlook for Commercial Real Estate in a Multi-Asset Portfolio

MIM Cuts to the Chase Podcast Series: The Outlook for Commercial Real Estate in a Multi-Asset Portfolio

MIM Cuts to the Chase Podcast Series: LATAM To the Left To the Left

MIM Cuts to the Chase Podcast Series: LATAM To the Left To the Left

MIM Cuts to the Chase Podcast Series: Emerging Market Investing Through Inflation

MIM Cuts to the Chase Podcast Series: Emerging Market Investing Through Inflation

MIM Cuts to the Chase Podcast Series – Episode 1: Intro and Opportunities in Bank Loans

MIM Cuts to the Chase Podcast Series – Episode 1: Intro and Opportunities in Bank Loans

The Future of Housing: Our Outlook for Single and Multi-family Investments

The single-family rental sector is following the same path toward institutional acceptance that apartments navigated in the 1990s and 2000s. Demographics and cultural changes along with technological advances in software, property management, and data have led to vast improvements in performance and transparency

Carbon Neutrality in Real Estate: Strategies for Success

It has been over five years since the Paris agreement has been signed and private sector carbon neutrality pledges are on the rise. We take a look at what the real estate industry doing and ask if it is enough.

Emerging Market Debt: Trends, Benefits and Opportunities

Scott Moses, portfolio manager of emerging market debt (EMD) at MetLife Investment Management sat down with Pensions Age to discuss the latest trends within EMD and the opportunities these can provide for pension fund investors. They discuss how the pandemic affected investments, what regions to be excited about and more.

Market Frictions and Climate Change: Why the Marketplace Can’t Just Fix it

We describe four major economic frictions that converge in climate change, scrambling the signals between prices and optimal production.

Inflation Housing, not Supply Chains

The high September headline CPI print of 5.4% concealed moderate price increases for the month, but going forward housing inflation is the indicator to watch.

Cycle Peaks of 10-Year Yields

In recent business cycles, rates have peaked relatively soon after recession end. Most forecasters are expecting a gradual peaking of rates in 2023 or later; we expect rates to peak in 2022.

Core Real Estate for U.S. Insurers

Rising inflation, an improving economy, and Risk Based Capital changes taking effect 12/31/21 are fueling broader interest by insurance companies in commercial real estate equity. This report outlines the rationale and the primary factors to consider.

Fall 2021 Real Estate Outlook: Two Steps Forward, One Step Back

U.S. real estate investors are benefitting from economic growth coupled with “made-for-CRE” monetary policy. Out of favor property types including retail, office, and hotel may offer attractive relative value today, and should not be ignored by investors seeking a diversified portfolio.

Evolution of Credit Quality in the Long Investment Grade Market

Every credit cycle leaves a lasting mark on corporate behavior, management financial policy and capital allocation. Today companies that have been able to build ample cash are faced with capital allocation decisions, which could further impact the trajectory of leverage. Learn more about how investment grade corporates fared through the cycle, recent trends, including ratings migration especially in the long credit market and how we are navigating the current environment

A Very Long Engagement: Asset Allocation Implications of U.S. Life Insurance Risk-Based Capital Changes

The NAIC approved updates to risk-based capital (RBC) bond and real estate equity factors for U.S. life insurance companies; we examine the changes from the prior RBC regime, as well as the implications on relative value considerations and life insurers’ strategic and tactical asset allocation.

Emerging Markets: Market Review and Outlook

Rate volatility and several idiosyncratic stories during the second quarter drove market performance within Emerging Markets. With delays to vaccine rollouts and continued high daily new cases and deaths hindering re-opening plans and putting excess pressure on economies, EM countries have lagged in the COVID-19 recovery. We expect Emerging Markets recovery to be a second half 2021 story, with countries starting to take active steps to reduce some of the unprecedented policy actions. We remain optimistically cautious given still robust accommodation, supportive growth and positive flow dynamics. In this paper, we look back at Emerging Markets in the second quarter, as well our expectations for the asset class in the second half of the year.

Technical Analysis Chart Pack: August 2021

The first chart in this report, U.S. 30 Yr. Yield, reminds us that the long-term downtrend is well and strong. There are some early signs that the short-term downtrends for G4 government bond yields may change. U.S. HY Spread widened a bit in last couple of weeks, but we feel that the risk of a spread spike remains low. U.S. equity continues its rally, and EM equity seems like already peaked. Commodities remain solid, while US Dollar and Gold are in trading ranges.

Changes to Investments Risk-Based Capital for U.S. Insurers: A Potential Positive for Public Structured Products

The insurance industry is expecting significant changes in investments risk-based capital, and for structured product portfolios these changes could amount to a paradigm shift.

Laying the Foundation: Carbon Neutrality in Real Estate Investment

In this paper, we examine the varied commitments the real estate investment industry has made to determine if our industry is contributing to the goal of carbon neutrality in a meaningful and more importantly, measurable, way.

NAIC’s RBC Update: Implications for Real Estate Allocation Decisions

On May 27th, 2021, NAIC’s Life RBC Working Group approved an ACLI-sponsored proposal to reduce risk-based capital (RBC) factors for real estate equity (REE). MetLife Investment Management hosted an interactive moderated panel discussion to discuss these changes and the investment implications for life insurance companies.

Recovery Risks at Mid-Year 2021

he Great Recovery of 2021 has so far been volatile and difficult to navigate. The remainder of the year could be at least as difficult with the added stress of potential Central Bank actions, which themselves are highly dependent on ever-changing data signals. We examine the greatest risks to our 2021 forecast.

Technical Analysis Chart Pack July 2021

The G4 government bond yields have been grinding lower from their recent peaks for last few weeks. The immediate downtrend may continue. US 2s10s yield curve spread seems to be more predictable than the 10yr yield level.  Continued equity rally and tightening HY spread suggest that market sentiment remains bullish.  US Dollar is stabilizing. Commodity rallies are intact, while they are approaching key resistances.

The Case for Investing in Floating Rate Bank Loans

With the economy expanding rapidly, growth in GDP is bringing the customary inflationary pressures along with expectations of rising interest rates. Given the supportive economic backdrop, we see value in floating bank loans. We will explore different segments of the bank loan market and highlight potential benefits and risks of the asset class.

Just Because You Call It a Recession Doesn’t Make It One

Although the COVID crisis caused significant economic disruption and has been defined as a recession, actions to stabilize the economy eliminated many of the positive effects that recessions can have including the failure of non-productive businesses. As a result, it is unlikely we are in a new business cycle. Rather, it is more likely we are returning to the business cycle of early 2020, albeit with significant changes to consumer and monetary and fiscal authority balance sheets.

NAIC’s RBC Update: Implications for Real Estate Allocation Decisions

MetLife Investment Management will host an interactive moderated panel discussion to discuss these changes and the investment implications for life insurance companies.

Investment Open For Business: Our Summer 2021 Commercial Real Estate Outlook

In our most recent commercial real estate outlook, we outline why cap rates may fall during the second half of 2021, explore recent work-from-home and office leasing trends, and comment on the unique “K” shaped nature of the economic downturn/recovery.

The Long and Winding Road: Opportunities and Challenges Facing Insurance Companies

MetLife Investment Management Strategies

Taxable Municipals: Market Review and Outlook

The Taxable Municipal market rallied aggressively in the first quarter. In our 1Q21 market review and outlook, we discuss what triggered this and explore market conditions and events that are likely to influence the asset class going forward.

A Stigmatized Sector—Our Outlook for U.S. Hotel Investments

Today, the hotel sector continues to face challenges, but we believe the most difficult period for hotel demand is behind us. In the very short-term, we believe investors who can provide liquidity to the hotel market can potentially achieve attractive returns.

Short & Intermediate Duration: Q1 2021 Recap, Performance & Outlook

In our latest report, we recap market impacts to short and intermediate duration fixed income assets for Q1 2021 and how that impacted our strategy as well as performance.

Emerging Markets: Market Review and Outlook

In our first quarter Emerging Markets review and outlook, we review current market conditions and global events as they relate to this asset class.

Investment Grade Corporate: Market Review and Outlook

Technical Analysis Chart Pack: April 2021

Fundamental economic data continues to support the continued risk-on market sentiment. Learn more in our latest technical analysis chart pack.

Quantitative Portfolio Strategy: Pension & Insurance – Applying A Risk Parity Strategy to a Fixed-Income-Only Portfolio

Avoiding the Crowds: Finding Opportunities in Private Structured Credit

In most fixed-income markets we are back to where we started in 2020 with low rates, tight spreads and warnings from some that asset prices across sectors may be overheated. What are fixed-income investors to do? For MIM’s Private Structured Credit strategy, it’s back to the basics – trying to identify higher-yield, investment grade opportunities that don’t fit neatly into the traditional asset-backed securities market or private securities market and work with borrowers to find financing solutions for these non-conforming sectors.

Emerging Markets 2021: Key Themes for EMBI Investors in a Post Pandemic World

Still Chained: N95 Masks and Supply Chains Lessons During COVID-19

Supply/Demand Mismatches and 2020 Economic Growth

Buying into the Energy Future

What's the Worst that Could Happen?

The Blockchain Blockbuster: Yapese Stones to Central Bank Digital Currencies

Blockchain, a revolutionary way of transmitting information trustlessly through time, has captured the imaginations of software developers, economists, and now, central bank policymakers worldwide. Blockchain is a version of distributed ledger technology, a system whose fundamental structure dates back hundreds of years to the Micronesian island of Yap.1

Private Capital Quarterly Investment Update (4Q 2020)