The Credit Clubhouse E48 - The Strength of Structured Credit with Michael Nowakowski of Conning
Jan 30, 2026
Michael Nowakowski, Managing Director and Head of Structured Credit at Conning, explains why structured markets stay range-bound with tight spreads. He flags late-cycle risks like documentation drift and issuer collateral creep. He discusses how private debt reshapes deals, the rise of digital infrastructure securitizations, and why esoteric ABS and data center risks deserve close attention.
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Private Capital Boosts Demand More Than Docs
- Private capital flow into structured credit is real but mostly shows up as more overall demand rather than large public deal-doc changes.
- Many esoteric new deals are 2–3x oversubscribed and dealer inventories remain light, signaling strong technicals.
Conning's Structured Desk And Its Client Base
- Conning is an insurance-focused asset manager and Michael runs trading and research across ABS, CMBS and agency mortgages.
- Structured products AUM slice has grown as investors hunt relative value away from tight IG corporates.
New Issuers Are Securitizing Digital Infrastructure
- New issuers are increasingly securitizing future cash flows to distribute risk and access sticky capital from money managers and insurers.
- Notable entrant growth includes digital infrastructure players, particularly fiber and data center issuers amid AI-driven demand.
