Hamilton Lane - Wed, 10/26/2022 - 16:28

Nobody Ever Got Fired for Buying Senior Credit

What you will learn

  • The important ways in which senior private credit can afford investors downside protection
  • How the returns of senior credit stack up relative to the leveraged loan index
  • Ways in which evergreen structures create differentiated access to senior private credit, delivering the potential for safety and yield.

“Nobody ever got fired for buying IBM,” is a saying that’s been floating around investor circles for decades. The now-legendary catchphrase has been used to imply that IBM was the ultimate safe bet for investors. Likewise, if private markets had a catchy sound bite today, it would have to be, “Nobody ever got fired for buying senior credit.” And there are several reasons for this, including:

  • Due to its floating rate nature, yields on senior credit increase as interest rates rise
  • Private credit has historically demonstrated resilience and consistent performance through up and down markets
  • The strategy has become more accessible than ever – and it could be just the answer many investors are looking for today

Read the Full Article Here


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