Fund Finance and Private IG Credit
Investment
How can defined benefit pension schemes use new alternatives to investment grade credit?
The maturing profiles of DB schemes has led to increased allocations to liquid credit, such as corporate bonds and ABS, as LDI collateral and liquid growth holdings.
Whilst we like these areas and support allocations, we see potential to increase portfolio efficiency by diversifying liquid holdings and recycling illiquid distributions into new areas.
We believe investment grade-rated credit strategies with different risk drivers are suitable options to achieve this.
Ajith Balan Nair
