Goldman Sachs Asset Management's survey report points out that although there is uncertainty in the macroeconomic environment, 43% of respondents in the Asia-Pacific region believe that investment opportunities are improving. Global insurance companies are taking advantage of the current "relatively high and sustained" interest rate environment to accelerate asset allocation to high-quality and private credit, as well as to increase duration and overall investment risk. According to the survey, the asset categories with the largest net allocation increase for Asia-Pacific insurance companies in the next 12 months are private credit (52%), investment-grade corporate bonds in developed markets (47%), green or impact bonds (44%), private equity (42%), and investment-grade private credit (38%). Participants in the Asia-Pacific region plan to increase or maintain the overall risk of their investment portfolios in the next 12 months, with 48% planning to increase credit risk and 45% planning to increase duration risk. Stuart Wrigley, Head of Solutions for Goldman Sachs Asset Management in the Asia-Pacific region, stated that due to confidence in the overall investment environment, insurance companies in the Asia-Pacific region are maintaining a risk preference strategy, favoring private credit and high-quality fixed income assets that can bring in more income growth and diversified income. Stuart Wrigley mentioned that changes in capital regimes and the need for liquidity management in the Asia-Pacific region are driving investors towards private credit allocation. Insurance companies are attracted to the risk-return profile and diversification benefits of private credit. It is expected that even with interest rate cuts, the attractiveness of private credit will continue to increase. Furthermore, in the survey, 83% of respondents expect the yield on U.S. ten-year Treasury bonds to be equivalent to or lower than the level at the time of the survey by the end of this year, while 17% expect the yield to exceed 4.25%. Insurance companies choose the top five asset classes that they expect to have the highest total return in the next 12 months, with four of the top five related to private credit and high-quality credit. These are private credit (53%), U.S. stocks (46%), government and government agency bonds (34%), investment-grade private debt (33%), and investment-grade corporate bonds in developed markets and private equity (each at 31%). Insurance companies expect that U.S. stocks and private credit will provide the highest total return in 2024, with 15% of respondents rating them as their top choices. Private equity and government and agency bonds tie for third place (10%). Private equity assets were not ranked first for the first time this year.