Private credit markets – optimism grows, but caution is warranted

12 min read 18 Mar 21

Summary: Activity levels in many private credit markets have unsurprisingly picked up over recent quarters as public markets bounced back, adding to the robust and growing pipeline of opportunities we are seeing across the breadth of the asset universe.

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Looking ahead to the rest of the year, so far the markets have been willing to look through the near-term weakness thanks to the positive vaccine news and supportive stimulus measures. While there are reasons to be optimistic, if the latest bond market jitters are anything to go by, we think caution is warranted ahead and private lenders should remain highly selective when evaluating new opportunities.

Discover more in our latest Spotlight on private credit markets, where we also take a closer look at the topic of environmental, social and governance (ESG) and what it means in private credit investing.

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.