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Voya Financial, Inc. announced today that it has entered into a definitive agreement with Allianz Global Investors (“AllianzGI”) whereby Voya will integrate certain assets and teams comprising the substantial majority of its U.S. business (“AGI U.S.”) with Voya Investment Management (“Voya IM”), the asset management business of Voya Financial. AllianzGI and Voya Financial initially announced on May 17, 2022 that the companies had entered into a memorandum of understanding regarding the strategic partnership.

“This transaction fully aligns with our company’s focus on growth and delivering greater value for all of our stakeholders,” said Rodney O. Martin, Jr., chairman and chief executive officer, Voya Financial, Inc. “We are particularly excited to embark on a highly strategic, long-term international distribution partnership with AllianzGI. In addition to the multiple financial benefits — including that the transaction is expected to be immediately accretive to adjusted operating earnings per share and improve Voya IM’s operating margin — this agreement will expand the scale and reach of Voya IM.”

Ignites takes a closer look at the upcoming deal between Voya Investment Management and Allianz, which will see Voya acquire most of Allianz’s US-based asset management business. The link includes a detailed graphic with timelines, data and background on the deal.

Voya Investment Management CEO Christine Hurtsellers was on the #HerCornerOffice podcast, available on LinkedIn, discussing her career and the challenges women can face as they progress in the workplace. “Is it harder for women to let go, let go of the details, to delegate, and to take the risks, and take that next opportunity because it’s about, I have to be perfect at it, I have to be better?” Hurtsellers asks. “Sometimes I think that can get in the way of our female talent to really reach forward and say, okay I am going to move on, I am going to take that risk, I am going to be comfortable being uncomfortable.”

Voya Financial, Inc., announced today that it has entered into a memorandum of understanding (“MOU”) relating to AllianzGI’s transfer of selected investment teams and assets comprising the substantial majority of its U.S. business (“AGI U.S.”) to Voya IM, Voya’s asset management business. The planned strategic partnership is being disclosed in anticipation of a definitive purchase agreement being finalized in the coming weeks, consistent with the timetable announced today for AllianzGI’s plans to divest AGI U.S.

Voya senior portfolio manager and head of asset allocation Barbara Reinhard was on Bloomberg TV discussing her outlook for the stock market and the broader macro environment. Reinhard said that she believes “bond yields have probably already peaked at this point. We saw the top of the 10-year Treasury yield peak back in very early May and we think that the world is going to go from worrying about inflation to worrying about recession. So, we think this is the very beginning of the worries we see happening for the economy.”

Bloomberg reports that the number of conflicts between creditors is increasing as distressed debt investing grows more common. In the most recent example, a KKR-backed company “secured a $1 billion financial lifeline by shifting its most valuable assets to a new loan, tanking the value of its older debt in the process.” According to Bloomberg, the move “signals that even with supply-chain disruptions, rising inflation and monetary-policy tightening fueling a fresh wave of opportunities, firms in the cutthroat business of distressed-debt investing aren’t scaling back efforts to cash in at their rivals’ expense.” Voya Investment Management chief investment officer of fixed-income Matt Toms said, “I don’t think growth in distressed-debt supply will decrease tension – I think it’s only going to increase it. In a rising interest-rate environment, not only does the cost of debt go up, the patience of capital goes down.”

Bloomberg reports that money managers are “being seduced by a relatively rare type of security – so-called recovery bonds – for their attractive spreads, duration and safety.” The bonds are generally issued by utility companies “trying to recapture losses from natural disasters, such as wildfires or storms, through special fees levied on customers’ electric bills. The charges are then bundled up and sold as notes which get classed as asset-backed securities.” Voya Investment Management head of securitized credit David Goodson believes the AAA rated notes make an attractive opportunity for investors who do not usually deal with structured products, saying, “Corporate investors throw in big orders, splashing the pot. That duration and spread at the AAA level makes these bonds look attractive relative value-wise.”

AiThority reports Voya Financial has named Tatyana Kibrik the new Chief Technology Officer of Voya Investment Management. In her new role, Kibrik “will be responsible for providing strategic technical leadership to innovate and implement solutions that enhance Voya’s investment and distribution efforts” by focusing “on investment and trading technologies, while advancing the firm’s investments in robust data science, machine learning, automation and environmental, social, governance capabilities for the benefit of Voya’s clients.” Voya Chief Information Officer Santhosh Keshayan said, “Tatyana brings to the role vast technical knowledge and deep leadership experience to help Voya continue our evolution to become a technology-enabled company and advance our investment and trading technologies in alignment with our business growth plans. Her broad experience will be instrumental as we continue to advance our business strategy to create better outcomes for our stakeholders.”

MarketWatch reports that even though most analysts believe “high-quality bonds should hold up better than stocks” in an inflationary environment, “that hasn’t been the case lately for debt issued by many Fortune 500 companies.” The sector has registered a -10% total return so far this year, one of its worst since the financial crisis, though sentiment may be changing. Voya Investment Management head of investment-grade credit Travis King said, “I think individual investors are still licking their wounds, given the negative total returns. But we think with around 4% yields it starts to look like a better entry point, particularly if there is stability in the Treasury market.”

Bloomberg reports that fund managers “are cranking up the production line for sustainability-linked ETFs as investor demand defies this year’s rates and Russia-driven market turmoil.” Twenty new ESG-focused ETFs have launched in the US so far this year, “roughly double a tally of nine from the same period in 2021, and compares with two in 2020 and just one in 2019.” Voya Investment Management head of ESG research believes the war in Ukraine has “brought new focus to various social and sustainability issues,” with clean energy funds benefitting “from the push to reduce fuel dependence on Russia.”