Harnessing the Potential of Private Structured Credit

Harnessing the Potential of Private Structured Credit

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Paul Carroll Poorvi Dholakia
APR 15, 2024

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Executive Summary:

  1. Private Structured Credit (PSC) presents a specific investment avenue, seeking to offer insurance investors yield pick-up vs public bonds, capital efficiency, risk mitigation via covenant protection, and sector diversification.
  2. Insurance companies in particular may benefit from PSC due to the predominance of investment-grade assets and the potential for attractive spread per unit of Risk-Based Capital.
  3. MetLife Investment Management (MIM) adopts a measured approach to PSC, utilizing its deep bench of credit analysts and focusing on strong transaction structures to help mitigate risks.