Unlocking the Value of Private Credit: A Look at Goldman Sachs’ Global Insurance Survey and a New ETF Solution for Retail Investors
Goldman Sachs recently released its 13th annual Global Insurance Survey, shedding light on the investment strategies of insurance companies in the current economic climate. One key takeaway from the report is the increasing interest in private credit as a way to boost resiliency and yield in investment portfolios.
Private credit, which involves non-bank lending directly to companies, is gaining popularity among institutional investors due to its ability to provide attractive returns, diversification benefits, income generation, and protection in downturns. This alternative asset class is seen as a hedge against inflation and rising interest rates, making it an appealing option for investors looking to enhance their portfolios.
To make private credit more accessible to retail investors, Accelerate Financial Technologies Inc. has launched the Accelerate Diversified Credit Income Fund (Ticker: INCM), Canada’s first private credit ETF. This fund aims to deliver exposure to the private credit and direct lending market, offering a 10% yield paid monthly to investors.
Julian Klymochko, CEO and Chief Investment Officer of Accelerate, highlighted the benefits of private credit, stating, “In a high interest rate environment, private credit has compelling tailwinds. Moreover, we believe that interest rates will stay higher for longer, which supports the sustainability of the private credit thesis over the medium term.”
As private credit continues to gain traction in the investment world, individual investors may also consider adding this asset class to their portfolios. With its potential for high yields, diversification, and downside protection, private credit offers a unique opportunity for investors seeking alternative income sources.
However, it is important to note that investing in private credit carries risks, and individuals should seek advice from a registered financial professional before making any investment decisions.
