Traditional Safe-haven Bonds Market Tumble Gives Rise to Private Credit Market

While borrowers continue to suffer from the rates hike from the beginning of the year, with the rising inflationary concerns, investment-grade and the government bonds market has not faired well either. 

Across the financial products spectrum, bonds have always been the stable and safer option for investors across the globe, typically, when there are high volatilities in the equities market, investors have a higher tendency to switch gear into bonds which offer a stable return.  

Nevertheless, with the continuous rates hike expected across the globe, participating in the public capital markets becomes difficult from both a the borrower and investor standpoint.  

The private credit market may offer a new channel for market participants to explore. With a good number of real estate high-yield developers going into either liquidity or credit crisis, it gives another boost or reason for regional participants to take a closer look into the private credit space. 

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