As higher production costs and global supply chains are pushed to their limits – we are now living in an new inflationary era. This means traditional income sources, such as fixed-rate bonds are diminishing and investors need to look to niche areas to find the same risk-return on their investments.
According to Chief Investment Officer, Bob Sahota, strategies across private markets, in particular private debt, may be well equipped to deal with the ongoing market volatility and changes to interest rates. In periods of higher inflation, private debt can offer investors a level of protection – being a floating rate asset class means the underlying yield increases as inflation and interest rates increase.
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