“As the Fed moves to reduce policy guidance, uncertainty over the short-rate path is likely to rise, creating additional volatility along the yield curve”
European private loans should not be read as simply another form of private credit. They are better understood as, on average, high-quality investment grade bank lending, with embedded illiquidity premia well suited for a tight spread environment.
By Syed Haziq Zikri Syed Danial, Head of Sukuk and Portfolio Manager, Emerging Markets Fixed Income, and Fu Yu, Investment Specialist, Emerging Market Fixed Income