Tag : diversification

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.

As investors rethink the role of fixed income in a more volatile and fragmented market environment, asset-based credit (ABC) is emerging as a differentiated source of shorter-duration income, structural downside protection and diversification beyond traditional corporate lending, says Sachin Patel, managing director at Neuberger.

Geopolitical tension and a Middle East crisis have roiled fixed income markets. Slowing growth, soaring energy costs and fiscal pressures have sent mixed signals. Portfolios seek strategies that dampen volatility while preserving capital and providing flexible, unconstrained diversification, according to BNP Paribas Asset Management.