Use structural shifts in credit markets to capitalise on VUCA

Samantha Milner  |  Ares Management  |  18 February 2020  |  0.25 CE

Credit markets have experienced fundamental shifts since the Global Financial Crisis and are still being disrupted today. Banks have retrenched from traditional corporate lending with institutional and retail investors filling the gaps. In credit, institutional and retail investors are more diverse and generally more efficient than banks at pricing risks, reducing systemic risk but increasing asset-level risk. This shift and the current VUCA environment create opportunities for investors to increase diversification and income in their diversified portfolio...

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