Gravis' Albane Poulin: The case for private credit over high yield bonds

'Compelling alternative'

High yield bonds have historically been the go-to asset for investors seeking an enhanced level of income.

They tend to offer substantial yields compared to government bonds or investment-grade debt, albeit with higher risk. In recent times, however, private credit has emerged as a compelling alternative. FCA greenlights two further LTAFs for Aegon UK Readers may be a little less familiar with private credit than they are high yield bonds. Also known as direct lending or private debt, it involves non-bank institutions providing loans directly to companies - often mid-sized or privately held firms. Unlike traditional bank lending, private credit is usually structured as bespoke, ne...