Three reasons to add corporate loans to your income strategy – Livewire Markets

Mandatory retirement savings in Australia are worth $2.7 trillion and growing. Equity markets are arguably looking fully priced, particularly as the rhetoric of a trade war between the US and China ramps up again. To top it off, bank deposits and bond yields are offering circa 2% yields at best.

Finding investment opportunities that are diversified away from the traditional asset classes of equities and bonds is difficult and explains the explosion in demand for alternative assets such as private debt or corporate loans.

Corporate loans broadly refer to loans made to businesses of scale (ie. not SMEs) for a specific business purpose (eg. working capital, capital expenditure, acquisitions etc). Returns are generated from interest, …

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