Projected analysis: Adding Asian private credit to a portfolio
Summary
We believe the asset class can potentially enhance overall portfolio returns at acceptable levels of risk. To put the idea to the test from a forward-looking perspective, this paper analyses the impact of a 10% allocation to Asian private credit on a portfolio. The analysis was performed by risklab, a global team of more than 60 investment and risk advisory experts within Allianz Global Investors.
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Private credit in Asia: Higher yield potential in a low-yield world
Summary
Institutional investors can play a vital role in financing the recovery from the global slowdown caused by COVID-19. Middle-market or medium-sized companies in Asia are increasingly struggled to access traditional (bank) lending in the current environment. Investors have an opportunity to provide funding to these companies through the private credit markets and can earn potentially higher yields.
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