On September 12, Voya’s experts and special guests discussed five topics at the forefront of private credit investors’ minds—from integrating private credit into pension portfolios to exploring new frontiers. Here’s a summary.
Voya’s Brett Cornwell joins Nikki Pirrello to discuss how plan sponsors are utilizing non tradition fixed income assets in their portfolios.
As overfunded plans blow through glide path triggers, nontraditional fixed income assets can be a secret weapon to help reduce concentration risk and tracking error, and preserve funded status.
Most U.S. plans are now 110% funded. Pivoting to cash flow driven investing can reduce admin costs while better managing liquidity needs.
A third consecutive year of improved funded status for U.S. pension plans, IBM re-opens its DB plan, and the importance of diversifying and de-risking.
Next year’s alts themes are pension funds’ move into private credit, the IRA-driven appeal of renewables infrastructure debt, and big opportunities in mortgage derivatives.
With attractive yields, robust covenant protection, and a surprising amount of liquidity, investment grade private credit is a growing favorite of both investors and borrowers.
Sponsors have waited over a decade for rates to rise and funded status to improve. Although both have now occurred, pushing most plans over 100% funded, many still carry elevated allocations to equities and other risk-seeking assets. Here is why de-risking is now not just beneficial, it’s mission critical.
Funded status improved once again for S&P 500 pension plans, rising for the fourth consecutive quarter to 108.7%—the highest level since 2007.
Funding ratios rose again in 2022, putting plan sponsors in another surprisingly strong position. But with critical decisions looming, de-risking and diversification are paramount.