Australian Pension Funds Eye Niche Private Debt to Boost Returns

-- Australia’s pension giants are looking to expand their private credit exposure to some nascent products, as the cash-flushed industry hunts for ways to diversify portfolios and boost returns.Tesla Shareholders Should Reject Musk’s Pay, Glass Lewis Says

AMP has allocated as much as 3% of its active portfolio to private credit. Besides credit risk transfer — a type of bond issued by banks to insure the first loss on a pool of loans — its new fund’s mandate also includes distressed credit and special situations where borrowers are in financial difficulties.

Private credit as an asset class is facing potential headwinds as heavily-indebted borrowers face high borrowing costs, tighter cash flows and rising defaults. Moody’s Ratings recently warned of more defaults in the leverage buyout sector. “For those that have done corporate direct lending, commercial real estate debt and infrastructure debt, that next iteration is an even more esoteric world,” said Andrew Kleinig, managing director and head of Australia at Nuveen.5 Canadian Stocks With a Real Chance of Tripling Your TFSA’s Value

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Australian Pension Funds Eye Niche Private Debt to Boost ReturnsAustralia’s pension giants are looking to expand their private credit exposure to some nascent products, as the cash-flushed industry hunts for ways to diversify portfolios and boost returns.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

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