Private credit outlook: all about the yield

While a recessionary backdrop may mean private credit investors stay cautious in the short term, we believe there are grounds for optimism in 2023, not least higher starting yields.

While a recessionary backdrop may mean private credit investors stay cautious in the short term, we believe there are grounds for optimism in 2023, not least higher starting yields. Sector wise, we favour counter-cyclical sectors which typically provide more defence against current conditions.