Are returns in private debt still attractive?

In this episode, Genevieve Cua speaks to Hui Yang Goh, Head of Alternative Investments for Asia, on the investment opportunities in private debt.

Private debt, such as loans and bonds, is a fast-growing asset class that offers diversification benefits and an illiquidity premium. It provides structural downside protection as lenders have higher claim on assets and can negotiate protective covenants.

However, investors should consider risks such as illiquidity, country/legal risks, and leverage.

Despite potential challenges, the outlook for private debt remains positive, with attractive yields and the potential for compelling entry points, but careful credit selection and robust risk management are crucial for achieving attractive risk-adjusted returns.

Listen to the podcast to learn more about:

• Popularity of private debt as an asset class
• Why get an exposure
• Challenge of the macro environment
• Risks to watch
• A realistic look at return expectations
  

About WealthBT Podcast

Learn to protect and grow your wealth in this podcast series for affluent individuals, hosted by The Business Times wealth editor Genevieve Cua and Pictet experts in selected episodes.

Listen to more episodes with Pictet experts