Episode 398: A New Chapter in US Credit Markets

Bill O'Neill, CFA, Senior Portfolio Manager and Co-Director of Portfolio Management, and Ginny Schiappa, CFA, Senior Portfolio Manager, at Income Research and Management (IR+M), join host Stewart Foley to discuss the forces reshaping US credit markets and the implications for insurance investors. As AI infrastructure investment accelerates, traditional distinctions between investment grade and high yield are becoming increasingly nuanced. Bill and Ginny examine the growing financing needs of data centers, changing credit quality across rating categories, and the influence of passive investment flows on bond pricing. They also explore the evolving role of US Treasuries and how investors can assess risk beyond conventional credit ratings. The conversation also highlights opportunities beyond traditional corporate bonds, including asset-backed securities, commercial mortgage-backed securities, and specialized credit structures. Bill and Ginny share their perspectives on disciplined security selection, portfolio diversification, managing concentrated exposures, and how technology and AI are supporting investment research and portfolio management at IR+M.