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Private Credit Funds Could Provide Lost Yield

To be honest, it’s pretty difficult to be a bond investor these days. The current environment is a tough nut to crack. On one hand, low interest rates mean that shorter-term bonds and cash are paying next to nothing. This is a huge issue considering the high rates of inflation currently affecting the economy – an issue that hurts longer bonds as well. Rates will rise sooner than later, which will push down prices for longer-dated bonds, resulting in potential losses.

But those seeking income from their portfolios may have a way to get some yield back while mitigating interest rate effects.

The answer may be in private credit.

Once an asset class reserved for institutional and high-net-worth individuals, private credit options are now available to the average Joe. Given the asset class’ unique benefits, it could be worth a portfolio addition in the current environment.

Don’t forget to check our Fixed Income Channel to learn more about generating income in the current market conditions.

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private credit yield comparison

Accessing the Once Inaccessible

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