As default rates rise, better metrics are needed to help private credit investors
Traditional headline metrics for fixed income may not take into account risk-mitigating factors put in place by managers – or the lack thereof
Add BT as a preferred source
AVOIDING losses is key when investing in private credit, but navigation can be tricky given a general lack of data as well as a lack of standardised metrics.
Initiatives are underway to address this, but the higher-for-longer interest-rate environment means investors should pay more attention to default risks and think about diversification.
“Transparency is key for private credit. Investors need to understand the underlying exposures within a private credit vehicle and the associated risks linked to those assets,” said Brett Craig, director of private credit at asset manager Aura Group.
TRENDING NOW
On the board but frozen out: The Taib family feud tearing Sarawak construction giant apart
Thai and Vietnamese farmers may stop planting rice because of the Iran war. Here’s why
PayPal plans job cuts as its new CEO pursues turnaround strategy
MAS, bank CEOs convene over AI cyberthreats; boards told to own risks, not leave to IT teams
