Australian Mercantile Collections

Private debt can offer superior returns and reduce portfolio volatility

Private debt can offer superior returns and reduce portfolio volatility

For investors, the prospect of preserving capital while achieving attractive returns might seem too good to be true.

After all, don’t higher yields equate to higher risk?

While no asset is entirely risk-free, private credit offers the opportunity for investors to achieve superior returns in an asset class that has a low correlation to bonds and equities.

Also known as private debt, private credit is lending to businesses and projects by lenders who are not banks, typically providing loans…

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