Scott Tominaga Underlines What Makes Investing in Private Debt a Good Idea
As an asset class, private debt has experienced considerable growth in recent years. This growth has largely been fuelled by investors gradually recognizing the potential for enhanced risk-adjusted return that private debt can bring to the portfolio relative to typical corporate bonds. As per Scott Tominaga, investing in debt provides a great opportunity to target yield through interest payments. It is a lower-risk asset class than equity.
Scott Tominaga marks a few advantageous aspects of investing in private debt
Private debt implies to loans to companies that are provided by private markets, instead of banks or public markets. Debt finance is widely used to finance buyouts in established markets like the US or Europe. It is also used as expansion capital or to finance acquisitions...