Private Access Introducing Private Debt
Investing for Income
The 30-year bond bull market may be ending. Inflation might be back and interest rates might be going up! But then again, none of this may happen and we may yet continue on our merry way.
The one certain thing though is that we are in for an interesting year that may result in low returns and higher volatility for safe harbour investments.
Whatever the case may be, it is time to look for alternative income strategies to add to this part of the investment portfolios.
Crossinvest Private Access is pleased to introduce one such strategy: Access to a global market of US$67 trillion with potential cash returns of 8-12% p.a. – Crossinvest Private Debt.
Many investors, irrespective of wealth or risk profile, have a part of their portfolio focussed on capital stability and cash income, largely invested in government and corporate bonds.
But the 30 year bond bull market may be coming to an end.
The last charge of this extraordinary bull run was led by central bankers’ QE campaigns, but these have now peaked and may retreat in the near future. Bond returns may be both low and more volatile than usual, an unattractive combination.
This is even more concerning for those investors in leveraged bond portfolios, which is a commonly used strategy particularly in Asia. Bankers have been overly eager to facilitate more leverage to achieve higher returns or to maintain double digit returns – as the fallacy goes, the higher the leverage, the higher the returns.
In this paper we introduce the private assets investment class, which is focussed on debt markets much like bonds, but without some of the unattractive market dynamics that bond markets might face in the decade ahead.