Schroders Private Assets Media Summit 2021: Overcoming zero rates with private debt

Private debt can play a crucial role helping investors overcome the global challenge of record-low interest rates, journalists at Schroders Private Asset Media Summit 2021 were told.

Rock-bottom rates and low returns mean the need for a stable income and capital preservation are critical objectives for investors.

The diversification delivered by private debt across the likes of securitised credit, infrastructure and real estate debt, as well as corporate loans and impact investing can support investors overcome these challenges, Nick Pont, Schroders Capital’s Head of Product Strategy for Securitised Products and Asset Based Finance explained.

He said:

“Generating successful investment outcomes with an uncertain economic backdrop is hard. With high asset prices, and with very little income offered in traditional markets, it is an even greater challenge.

“We are currently in a prolonged period of low interest rates globally and therefore it is key to identify and deliver investment options that access a diverse set of opportunities.

“Across the private debt space, we see opportunities in housing, consumer debt and real estate. But at the same time, we need to provide investors with the flexibility to access these opportunities across the likes of public securities and private loans.

“Schroders Private Debt offering boasts a proven track record of meeting these challenges and, right now, amid huge uncertainty, this will be more important than ever before.”

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