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Private debt promises better gains for asset owners in low-yield environment

Asset owners from Korea to Australia see both better returns and inflation hedging when spreading their fixed income to private credit. Still, rising inflation and interest rates are forces to be reckoned with when choosing the right strategy for the asset class.
Private debt promises better gains for asset owners in low-yield environment
Allocation to private debt, or private credit, has emerged as a popular diversification strategy for asset owners in recent years, given its potential for higher risk-adjusted returns in a low yield environment. Recently, private debt has also shown potential in dampening the damage caused by inflation on portfolio performance, via public market exposure. In the US, very volatile market conditions have emerged, with some of the highest inflation levels in roughly 40 years — combin…
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