Tag : direct lending

As AI-driven concentration risk reshapes direct lending, Nuveen's latest insights explore how institutional investors in Asia Pacific (Apac) are building genuine diversification across alternative credit – without accumulating hidden risk. The key is to create more resilient portfolios by moving beyond concentrated direct lending toward energy infrastructure credit and real estate debt.

Credit events can happen when monetary policy shifts from very accommodative to a more restrictive stance such as the case over the past few years. The key to distinguishing assets such as true private credit from the broadly syndicated loan market, is understanding structures, underwriting standards and manager incentives, according to Tim Warrick, managing director, and head of Principal Alternative Credit.

Alternative credit strategies such as direct lending, energy infrastructure credit, real estate debt, and collateralised loan obligations can provide shelter for portfolios during uncertain times.

The rest of this year should produce a dynamic market environment that will offer alternative credit investors many opportunities to access attractive returns while improving overall diversification levels, according to new research from Nuveen.