As investors seek to diversify their portfolio exposures beyond traditional assets, alternative lending may offer attractive absolute and risk-adjusted return characteristics. An allocation to alternative lending may provide investors with exposure to a secular shift in the way consumers and small businesses access capital. In this paper, we provide insights on this asset class and discuss why we view it as a through-the-cycle allocation for well-balanced portfolios.
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Private Credit
The Private Credit session compares investments in floating rate private credit loans and fixed rate public bond markets. Learning Objectives:
- Understand the differences in risk and return by investing in public and private credit, as well as fixed and floating rate investments
- Discuss the range of private credit investments, including business development companies (BDCs), direct lending, mezzanine, distressed, specialty finance, real asset credit, bridge financing, and special situations.
- List the risk, return, and liquidity characteristics of private credit, including the portfolio construction implications of funding allocations from equity, investment grade, and high yield debt