3 key reasons why this asset class could perform well in your portfolio

As the CEO of Pengana Credit, I'm excited to discuss the outlook for global private credit over the next six months, particularly focusing on the impact of the macro environment on credit managers and credit generally.

Let me outline three key themes:

1. First, there’s growing confidence that interest rates will remain flat or even see some cuts, leading to increased economic activity and confidence for companies to invest in growth.
2. Second, there’s ongoing bank dislocation due to increased regulation, creating more opportunities for private credit managers like us as banks shed assets from their balance sheets.
3. Third, the imbalance between capital demand and supply results in favorable terms for credit providers, maintaining attractive pricing and structural protections.

In conclusion, I believe these dynamics are likely to lead to strong growth in high-quality credit origination and returns, with positive prospects for asset quality due to our conservative underwriting practices.