When markets are calm, a portfolio can look healthy while drifting away from its payout reality. When markets gap down, that drift becomes visible immediately. So I prefer tools that make drift obvious before stress arrives.

If I had to reduce insurance asset management telemetry to a small dashboard, I would keep three signals and one rule.

First signal the curve in payout terms. Not just the level of yields, but the ladder view of where cash actually arrives relative to where liabilities demand cash. The curve can be upward sloping and still be dangerous if reinvestment timing is wrong.

Second signal spread compensation. If BBB spreads are tight, that is a constraint. It tells you the portfolio is not being paid much for errors, and liquidity needs to be treated as a first class requirement.

Third signal volatility as a liquidity proxy. I do not trade VIX. I read it as a reminder that market depth can change faster than models.

The rule never let the portfolio require perfect exits. If a strategy only works when liquidity is friendly, it is not a strategy, it is a bet.

This is why I like small, repeatable systems. They do not predict. They prevent accidental fragility.

Ordefoco Asset Management: https://www.ordefocoassetmanagement.com/