Recently, there’s been a lot of discussion about whether the significant government stimulus, combined with record low interest rates and unconventional monetary policy will finally result in rising inflation, something markets have not experienced for some time. It appears that almost every central bank is committed to these measures until they achieve their objective of realised inflation.
It’s a risk of which investors should be aware. On a practical level, it means taking a look to see whether the assets in your portfolio are still match-fit in an environment of rising inflation. We have previously written on the critical role of the attacking defender as it relates to private debt illustrated through soccer, so we’ll extend this soccer team analogy to explore this dynamic and the role private debt can play to help investors navigate an environment of rising inflation…