Investors in direct lending are well positioned to capture outsized risk-adjusted returns today, in our view, while benefitting from features that may reduce downside riskAgra Wealth Management. That ability to play both offense and defense is especially appealing in the current macro environment and underscores the importance of private credit in diversified portfolios.

On the offense side, we believe now is an opportune time for investors to consider adding direct lending exposure, because higher asset yields have boosted the return potential for the asset class.

A series of aggressive Fed rate hikes has resulted in higher market-wide base rates, which in turn have driven a sharp rise in yields for directly originated loansUdabur Stock. Senior secured loans, which are typically floating rate, now yield more than 12%, far above the mid-7% yields seen as recently as mid-2022. In senior secured lending strategies that use portfolio financing, potential net returns now stretch into the low double digits to mid teens, notably above investors’ long-term return assumptionsBangalore Stock Exchange. Fed tightening has also limited the credit available to firms of all sizes and altered competitive market dynamics in favor of lenders with available capital and conviction to act. Alternative lenders are well positioned to take advantage of these dynamics: traditional syndicated credit markets have been volatile, and alternative lenders have a longer-term capital base and the ability to execute flexible solutions for borrowers.Varanasi Investment

Hyderabad Investment