Publications

Increase in private credit exposure has potential to impact CRE in a big way
Research - JUNE 5, 2024

To read this full article you need to be subscribed to Newsline.

Sign in Sign up for a FREE subscription

Increase in private credit exposure has potential to impact CRE in a big way

by Andrea Zander

Private credit accounts for 36 percent of insurers’ total investments in the United States, compared with just 6 percent in Asia Pacific, according to a survey by Moody’s.

Eighty percent of respondents to a Moody’s survey with 30 global insurance companies with significant life insurance business said they plan to increase their holdings of at least one class of private credit over the long term which, based on their asset concentration, will affect commercial real estate in a big way.

“Higher private credit exposure does not necessarily signal increased appetite for investment risk. Rather, many insurers have reallocated part of their portfolio toward less liquid assets of similar credit risk because they feel these investments now offer sufficient additional compensation for their lower liquidity,” said Will-Keen Tomlinson, a vice president with Moody’s private credit team.

To read the full report,

Forgot your username or password?