Conning Q&A: Structured Securities May Reward Patient Investors if Economy Continues to Improve in 2021
February 05, 2021
Also Offers Views on CMBS, Growth in ESG and Potential Impact of Biden Administration
HARTFORD, CT – February 5, 2021 —Leading global investment management firm Conning has posted a Q&A examining the state of structured securities as the new year begins. Economic growth could reward investors in the asset class as the year progresses, and there may be select opportunities in CMBS.
Paul Norris, Head of Structured Products at Conning, said that economic growth will likely continue in 2021, given pent-up demand and the ongoing support of quantitative easing from the U.S. Federal Reserve.
“Given the impact of the pandemic and now the vaccine, we think the pent-up demand and other positive attributes will begin to come to the fore in the second half of 2021,” Norris said. “Conning believes some of the weaker credits today are going to become the positive stories of tomorrow.”
He also notes that CMBS have been highly challenged in the pandemic environment but thinks “people are going to start venturing back to some of the more hard-hit asset classes in CMBS - malls, hotels and office space.”
He also offers views on ways to support growing interest in ESG investment principles in structured securities and suggests a wait-and-see view of how Biden administration policies may affect the securitized market.
Conning (www.conning.com) is a leading investment management firm with approximately $198 billion in global assets under management as of December 31, 2020.* With a long history of serving the insurance industry, Conning supports institutional investors, including insurers and pension plans, with investment solutions, risk modeling software, and industry research. Founded in 1912, Conning has investment centers in Asia, Europe and North America.
*As of December 31, 2020, represents the combined global assets under management for the affiliated firms under Conning Holdings Limited and Cathay Securities Investment Trust Co., Ltd. (“SITE”). SITE reports internally into Conning Asia Pacific Limited, but is a separate legal entity under Cathay Financial Holding Co., Ltd. which is the ultimate controlling parent of all Conning Holdings Limited controlled entities.
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