Peter Szekely from Tanarra Credit Partners discusses the benefits of private credit investments for retail investors on ausbiz TV.
TCP’s corporate loan market provides a higher cash rate than equities and is secured, giving investors a gross yield of 10% for senior secured risks. With various protections and low volatility, private credit is a compelling investment on a risk-return basis.
It is especially important to build a piece of allocation in this market during significant economic volatility. Investors should consider private credit if they are comfortable having a high cash income and understand the safer part of the capital structure.