Rise of alternative credit in Asia-Pacific

AS global markets began 2019, making amends for a bygone year that saw volatility hit levels not seen since global markets were spooked in 2015, much has been written about the shift in portfolio allocations away from traditional investments towards less liquid, alternative asset classes.

To this end, private markets are increasingly seen by many as a means to navigate the inherent challenges faced by the global economy in this current period of transition, amid the realities of quantitative tightening, geopolitical tensions and trade anxiety.

One particular segment in the private markets which has been attracting attention of late is private credit. This should come as no surprise to the keen observer, given that performance across the private credit sector has demonstrated strong yield relative to other asset classes.