Research - NOVEMBER 9, 2022

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Study reveals U.S. institutional investors are increasing their focus on structured credit

by Released

About 85 percent believe pension schemes will increasingly focus on structured credit products because they offer attractive yields when compared to other asset classes, and because they are also secured against collateral and subject to structural protections such as debt covenants and credit enhancement, according to a survey from Aeon Investments. The findings were based on U.S. institutional investors who collectively have around $87 billion in assets under management.

When asked to identify key reasons behind this growth in demand for structured credit, the top reason given by institutional investors in the United States was the need to protect against macro uncertainty. The next most important feature was the desire to seize new investment opportunities, followed by an increased drive for greater diversification and by the ability to gain access to ESG benefits that can exist in sub-asset classes with structured credit.

When asked for their reasons as to why inst

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