Private debt proved its worth to institutional investors during a sustained period of benign market conditions. But what does the outlook look like in an altogether more challenging environment?
The private corporate debt market is a growing focus for institutional investors. Having delivered strong performance against a benign economic background, we look at the outlook for the sector in what could be a more challenging period, as well as the characteristics that make it a useful source of diversification for institutional portfolios.
COVID-19 is undoubtedly placing a strain on the balance sheets of many companies. In our white paper, ‘The case for private debt’, we consider the impact of the crisis and the key considerations for investors when building resilient portfolios, including:
- The diverse nature of private corporate debt as an asset class;
- Current market trends and their impact;
- The importance of entry points;
- How the asset class stacks up against public alternatives;
- The key considerations for portfolio construction.