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Loans for insurers: aren't they the same as bonds ?

10.04.2014

The Fixed Income investment division of Natixis Asset Management highlights the differencies between loans for insurers and bonds and analyses the decree of 2 August 2013 in Ideas Fixed Income.

HIGHLIGHTS


- The decree of 2 August 2013 has opened up an opportunity for French insurers to diversify their portfolio by investing in unsecured loans and unlisted loan funds.

- Solvency II, IFRS and the growing private placement market are blurring the distinctions between loans and bonds.

- However, the legal differencies are significant, as is the tax treatment, and it is important to understand these differencies before investing.

"There is a growing trend for investors looking for return and diversity to turn towards loans and loan funds. In France, the decree of 2 August 2013 made it easier for insurance companies to lend to non-listed companies and to invest in non-listed loan funds. (...)"

Read more in Ideas Fixed Income