Talking heads – Loans: ideal potential for SME loans
In private markets, investing in loans can offer investors attractive characteristics, including low correlation to listed markets and opportunities for diversified exposure. Selecting loans in sectors known to be resilient to the vagaries of economic growth or that have pricing power can result in a portfolio with the potential to withstand rising interest rates and inflation .
Listen to the talking heads podcast with Laurent Gueunier, Head of Real Assets, SME Lending and Structured Finance, as he discusses the ins and outs of small and medium business lending with Chief Market Strategist Daniel Morris. Resilient sectors currently on its radar include technology, healthcare, business services and education.
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Please note that articles may contain technical language. For this reason, they may not be suitable for readers without professional investment experience.
All opinions expressed herein are those of the author as of the date of publication, are based on available information and are subject to change without notice. Individual portfolio management teams may have different views and make different investment decisions for different clients. The opinions expressed in this podcast do not constitute investment advice.
The value of investments and the income from them can go down as well as up and investors may not get back their initial investment. Past performance does not guarantee future returns.
Investing in emerging markets, or in specialized or restricted sectors is likely to be subject to above average volatility due to a high degree of concentration, greater uncertainty as less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).
Some emerging markets offer less security than the majority of developed international markets. For this reason, portfolio transaction, liquidation and custody services on behalf of funds investing in emerging markets may involve greater risk.