Private credit outlook

Given the nature of private markets, the pricing dynamics between each asset class and the changing lender mix, we expect to see variations in the risk/reward profiles of each asset class in 2021 and beyond.

2020 was a difficult year, for society, businesses and markets alike. The pandemic presented new and unforeseen challenges, creating periods of extreme uncertainty, and correspondingly high volatility in financial markets. As a result, governments and central banks around the world created unprecedented stimulus packages, which have effectively underwritten market spreads. This stimulus, combined with vaccination efforts, provides a much needed fundamental support, allowing countries to emerge from the pandemic, whilst providing confidence to lenders and borrowers to further promote growth and recovery.