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.
Traditionally, one key differentiator of the private debt market is the longer maturities available for borrowers. Understanding how the pandemic will impact a borrower over time is a key part of current due diligence.
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.
Download the full article
Investment capabilities
We incorporate our thinking across our investment strategies and solutions, and have strong credentials in corporate governance and responsible investment.
Author(s)
Samuel Jones
Portfolio Manager, Private Credit
Calum Macphail
Head of Private Credit Investment, Europe
