ABC Statewide drive: why is private credit gaining traction?
Yesterday I joined Jess McGuire on ABC Statewide Drive to discuss why private credit is gaining traction as a popular investment option.
Following the Global Financial Crisis (GFC) banks faced increased regulation, making particular loan types less profitable for them. As a result, banks stopped offering these types of loans, creating a gap in the market. The private credit sector has stepped in to fill this void.
The private credit sector is deemed attractive for a few reasons. It can offer high returns, provide investors with a higher priority for repayments (when compared to stock market investors), and is less volatile since private credit is not correlated to public markets. However, before deciding to invest in private credit thorough research on the fund is required.
Listen to the full segment at the 1:45 mark here: NSW Drive with Jess McGuire
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
