In private markets, investing in loans can offer investors attractive features including a low correlation to listed markets and opportunities for a diversified exposure. Picking loans from sectors known to be resilient to the vagaries of economic growth or that have pricing power can result in a portfolio with the potential to withstand rising interest rates and inflation.
Listen to the Talking heads podcast with Laurent Gueunier, head of real assets, SME lending and structured finance, as he discusses the ins and outs of lending to small and medium-sized companies with chief market strategist Daniel Morris. Resilient sectors currently on his radar include technology, healthcare, business services and education.
You can also listen and subscribe to Talking heads on YouTube.
Talking heads brings you the in-depth insights on topics that really matter to investors, including analysis of the world and financial markets through the lens of sustainability and more great conversations with investment experts.