Private credit needs a secondary market
Such markets address illiquidity fears known to plague investors in Singapore and the Asia-Pacific
PRIVATE credit has been growing exponentially across the Asia-Pacific (Apac) over the past five years, and is estimated to reach close to US$100 billion in assets under management (AUM) by 2027, up 46 per cent from 2024, said the Alternative Investment Management Association (Aima).
In Singapore, where investors gravitate toward income-generating assets and have a deep cultural preference for stability, private loans with floating-rate yields have been particularly attractive.
As interest rates settle at structurally higher levels and global banks continue their retreat from middle-market lending, private credit has positioned itself as a major alternative to traditional fixed income.
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