Private debt
Why invest in European consumer credit?
15 min read 14 Oct 19
Summary: European banks have hitherto guarded performing consumer loans very closely, but now regulatory pressures are forcing them to rethink this approach. Read the paper to find out what factors support the case for making an allocation to European consumer credit as part of diversified investment portfolio, and why we believe the asset class is one of the most exciting opportunities in private credit.
- European consumer credit is one of the largest and most diverse loan asset classes in Europe. It has also had resilient performance through economic cycles
- We investigate why we expect this trend to continue and also outline why investors, who have traditionally been unable to acquire exposure to this asset class, are now able to do so
- We believe that the confluence of a positive outlook and increased availability makes exposure to consumer credit in Europe a compelling opportunity for investors investing in private or alternative credit
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.