The Credit Edge by Bloomberg Intelligence
Schroders Is Real Estate Bull in Private Debt Rush
Oct 10, 2024
Michelle Russell-Dowe, co-head of private debt and credit alternatives at Schroders Capital, shares her expertise on the booming private debt market. She discusses the influx of investors diversifying away from public markets and highlights attractive opportunities in commercial and residential real estate. Russell-Dowe emphasizes the importance of recognizing emotional biases in investment decisions and the essential role of understanding market inefficiencies. The conversation also touches on emerging investors like retail and family offices entering private credit.
57:49
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Quick takeaways
- Schroders Capital highlights the increasing interest in private debt as a diversification strategy amidst declining public market returns.
- The podcast discusses the potential of commercial and residential real estate as attractive opportunities due to emotional bias in the market.
Deep dives
The Growth of Private Debt
Private debt has experienced significant growth, with its market estimated to reach between $20 trillion and $40 trillion, depending on definitions of funding types included in this category. This expansion is driven by a range of financing options such as asset-based finance and consumer finance, which are gaining traction alongside traditional corporate debt. There is a perception that private debt is not only a viable financing solution but also an integral part of the global financial system. This momentum may persist, given the ongoing expansion of capital allocation toward various forms of private credit.
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