What Higher Interest Rates Are Telling Insurance Investors

AllianceBernstein’s Eric Winograd and Geoff Cornell examine why higher long-term government bond yields may reflect structural forces beyond inflation.

• Rising AI investment and productivity expectations could lift long-term growth and the neutral interest rate.
• Heavy hyperscaler borrowing, persistent fiscal deficits and rising government debt are increasing competition for investor capital and term premiums.
• Greater policy uncertainty may keep rates more volatile, reinforcing the importance of disciplined asset-liability management for insurers.

Explore the full report to understand why higher yields may persist even if inflation expectations remain contained.