November 15, 2022
Alternative Investments and Private Debt Digest - October 2022 Edition
It's that time of the month again when we recap the top headlines from the alternative assets and private debt universe in our monthly newsletter. With the Federal Reserve enacting a fourth consecutive 0.75% interest rate hike, interest rates are at their highest levels since 2008, and rates are expected to continue rising well into next year. With traditional lending becoming expensive, capital will be harder to come by. The challenging economic environment is hitting the traditional investment markets, while investors in private debt are seeking higher yields and getting pickier as interest rates rise.
Alternative assets, including private debt, have little or no correlation to stocks and bonds, which makes them attractive to investors, specifically in times of turmoil, and they often have higher return potential than stocks and bonds. Private debt still demonstrates a sufficient yield premium net of expected credit losses, which will drive the growing allocations to this asset class in institutional and private portfolios.
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