Fixed income ETFs have become important investment tools for insurance companies. Common use cases include accessing certain complex asset classes such as CLOs or emerging markets (EM) debt, allocating to overlooked market segments such as fallen angel high yield bonds, or protecting against rising rates with investment grade floating rate bonds. Fixed Income ETFs also provide diversification into smaller accounts, enable building a liquidity sleeve around a core bond portfolio, and act as a tool for making tactical portfolio allocation changes. The many benefits of fixed income ETFs include low cost, liquidity, diversification, monthly income payments and bond-like accounting treatment for ETFs with NAIC ratings.
In addition to the liquidity, transparency and efficiency that fixed income ETFs can provide, NAIC-designated bond ETFs offer additional benefits to insurance companies. They can be classified as a "long-term bond issuer obligation" on Schedule D, which allows more favorable risk-based capital treatment with the added ability to adopt "systematic value" accounting, mitigating potential balance sheet volatility.
Max brings a wealth of knowledge and experience to the needs of U.S. insurance companies. As a key member of VanEck’s Business Development team, he responsible for managing and cultivating relationships across institutional clients.
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September 25, 2023
In the current “higher for longer” environment, investment grade corporate floating rate notes may continue to offer an attractive combination of enhanced yields and safety.
August 30, 2023
CLOs are not just a hedge against rising rates. They also have historically provided higher levels of income for a lower level of risk – making a clear case for a strategic allocation.
August 22, 2023
The green bond market offers emerging markets an opportunity to fund ambitious sustainability goals, and some countries are already leading the way.
May 03, 2023
Yields and spreads on CLO debt remain extremely attractive, and a new rate environment could actually bring additional return potential and the opportunity for above-coupon returns.
April 25, 2023
Portfolio positioning and security selection were key performance drivers for the VanEck CLO ETF in Q1 as the Fund outperformed the J.P. Morgan CLO Index.
March 21, 2023
Fallen angel high yield bonds provide a distinct value proposition that sets them apart from the broad high yield market.
March 03, 2023
Are CLOs part of your core income portfolio? This white paper explores how CLOs are structured and why we believe they are compelling in the current environment.
February 24, 2023
Fran Rodilosso sat down with Forbes to discuss VanEck’s fallen angel high yield bond strategy and its record of systematically buying what others sell and selling what others buy.
Important Definitions & Disclosures
