Private credit funds will offer investors an attractive opportunity to benefit from regular cash income and low volatility regardless of which economic conditions prevail during 2024, a year which brings much uncertainty, according to the managing director of Tanarra Credit Partners (TCP), Graham Lees.
According to a new Insights paper – “TCP Outlook for 2024: Risk of Inflation Lingers” – the private credit asset class finished 2023 with a strong performance. The JPM Credit Research: Leveraged Loan index gained 13.2 percent in 2023, with BB loans returning 10.2 percent and B loans gaining 14.6 percent.
“These were the second strongest returns for loans on record. We expect another strong year in 2024 despite a possible increase in financial market volatility, given the rise in official interest rates, which has raised the cost of credit generally. This flowed through to returns with the JPM Leveraged Loan index above 8 percent in January,” said Mr Lees.
The views expressed are her own and do not consider the circumstances of any investor.
