Private credit optimism masks mispricing risks says expert panel

At AsianInvestor's 16th Insurance Investment Briefing on March 19, leading asset managers in the private credit space warned insurance investors about the growing disconnect between risk and pricing creating a potentially dangerous market environment where many investors may be underestimating the true risk in their portfolios.

Despite an audience poll at the event showing that most insurance investors plan to increase their allocation to private debt in the current economic landscape, experienced players like TCW Capital, Oaktree Capital Management and HSBC Asset Management have aired their concerns on the panel about the market landscape.

"Our view is that both public and private markets are mis-pricing risk today," Rick Miller, group managing director and chief investment officer at TCW told the attending delegates.