Private debt
Seeking income. The case for investing in private corporate debt
20 min read 8 Dec 20
Summary: Pension funds with current cashflow requirements depend on a steady stream of payouts, but face a number of unique challenges in their search for income against a backdrop of lower-for-longer yields and volatile investment conditions brought on by the COVID-19 pandemic.
We believe building strategic exposure to private corporate debt could help to boost income at a time when it is most needed, and help investors in their quest for diversification.
The value of investments will fluctuate, which will cause prices to fall as well as rise and investors may not get back the original amount they invested.