Goldman Sachs: Market concerns over insurance company's private credit risk are exaggerated; bond sell-off is an overreaction

2026-03-07 02:22:02

Recently, due to concerns over AI disruptive risks and the private credit market, the spread on U.S. investment-grade insurance company bonds has widened significantly, with the spread gap doubling compared to a year ago. Goldman Sachs credit strategists believe that the market is overly worried about life insurance companies’ exposure in the private credit sector. An assessment of their balance sheets shows that the median allocation to alternative assets is only 6%, and the overall leverage risk is much lower than market expectations.

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