#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

CHINA’S Q4 GDP GROWTH SURPRISED ON THE UPSIDE, BUT RISKS TO THE OUTLOOK HAVE INCREASED
This morning, China published its Q4 GDP growth alongside with December monthly activity data. Q4 growth accelerated to 6.5% yoy which lifted total 2020 GDP to 2.3%. December real activity data were more mixed. While exports came in strongly, important domestic demand components were a bit unsteady.
COVID-19 FACTS & FIGURES
US President-elect Joe Biden has unveiled a $1.9 trillion stimulus package proposal. Following the recent increase in cases, China has imposed new restrictions and lockdowns in the Hebei province. Canada has implemented new restrictions and a provincewide curfew in Quebec that will last until February 8. German Chancellor Angela Merkel warned that the recent rise in Covid-19 cases could force the country to prolong the nationwide lockdown until April.
EQUITIES: STAY POSITIVE WITH A VALUE-CYCLICAL TILT
Following a monster rally in stocks last autumn, multiples are well above historical averages, but equity investors can count on lingering low yields, tighter credit spreads and increasing central banks’ balance sheets which in turn maintain low the cost of equity and the discount rate of future cash flows.