#White paper
LIFE AFTER COVID: THE LDI VIEW

We are pleased to share with you the latest Investment White Paper released by Generali Insurance Asset Management S.p.A. Società di gestione del risparmio

In this paper our Research and Investment teams analyse “Life after Covid“, covering our view on the economic recovery, new behaviours in the aftermath of the pandemic and the unique opportunities for a European fiscal and political integration. From an investment perspective, the paper examines opportunities and risks in the Credit sector – highlighting key differences between the Global Covid Crisis (GCC) and the Great Financial Crisis (GFC) – and investigates the impact on the insurance sector and LDI trends.

Table of content

  • The Economy: Sudden Stop, Permanent Scars  
  • New Behaviours
  • Covid An Accelerator Of European Integration?
  • Corporate Rating Migration & Defaults: This Time Is Different
  • Insurance Sector: The Day After
ALSO INTERESTING: A summary of the key topics analysed in the paper is provided by Vincent Chaigneau, Head of Research, in a dedicated Podcast.

RELATED INSIGHTS

COVID-19 FACTS & FIGURES
According to the IMF’s Managing Director, strong international cooperation on coronavirus vaccine could speed up the world economic recovery and add $9 trillion to global income by 2025. A WHO trial found that Remdesivir, Hydroxychloroquine, Lopinavir and Interferon have little or no effect on hospitalized Covid-19 patients. Gilead Sciences has questioned the findings of the WHO study saying data appeared inconsistent.
INCORPORATING QUANT SIGNALS INTO EU EQUITY SECTOR/STYLE STRATEGY: MAINTAIN A TILT TO CYCLICALS AND VALUE
We present an update of our proprietary equity valuation tool, based on quant models. It provides indications of over- or undervaluation for different sectors and styles of European equities, which is further enriched by our qualitative analysis. Currently, among European equity sectors, financials, energy, telecoms, and autos look undervalued while Pharma, utilities and software appear overvalued.
CHINA’S RECOVERY CONTINUED BUT A BIT SOFTER THAN EXPECTED
China's economic recovery continued in Q3 2020, although a bit softer than expected. Real GDP growth rose to 4.9% yoy, slightly below the Reuters consensus expectation of 5.2% yoy, but still a substantial upturn from the 3.2% yoy in Q2. On a quarterly base, growth dynamics softened to 2.7% qoq, after 11.7% qoq and -10% qoq in the two previous quarters.