Zeroing in on private credit: more than meets the eye?
From humble beginnings to rising prominence and mass appeal, private credit has evolved from a mere financing appendage to more than a trillion-dollar asset class—all in a span of just two decades. What are some of the key drivers that have altered the course of traditional lending? Let’s trace the origins of this asset class to examine its role in contemporary portfolio construction.
Index definitions
Bloomberg EM USD Aggregate Bond Index: An index that tracks intermediate term investment grade bonds in the United States.
Bloomberg Municipal Bond Index: An index that tracks the performance of the U.S. investment-grade tax-exempt bond market.
Bloomberg U.S. Corporate HY Index: An index that tracks the USD denominated high yield, fixed-rate corporate bond market.
Bloomberg U.S. Corporate IG Index: An index that tracks the investment grade, fixed-rate, taxable corporate bond market.
Bloomberg U.S. Mortgage-Backed Securities (MBS) Index: An index that tracks 15- and 30-year fixed-rate securities backed by the mortgage pools of Ginnie Mae, Freddie Mac, and Fannie Mae.
Bloomberg U.S. Treasury Index: An index that tracks U.S. dollar-denominated, fixed-rate, nominal debt issued by the U.S. Treasury. Treasury bills are excluded by the maturity constraint but are part of a separate Short Treasury Index.
MSCI ACWI Real Estate Index: An index that tracks the large- and mid-cap segments across developed and emerging markets. The index securities are all classified in the Real Estate according to the Global Industry Classification Standard (GICS®).
MSCI ACWI Infrastructure Index: An index that tracks mid- and large-cap securities across developed and emerging markets that are owners and operators of infrastructure assets.
S&P 500 Consumer Staples Index: An index that tracks the performance of companies in the S&P 500 classified under the GICS consumer staples sector.
S&P 500 Index: An index that tracks the performance of 500 of the largest publicly traded companies in the United States. It is not possible to invest directly in the index.
S&P 500 Real Estate Index: An index that tracks the performance of real estate investment trusts (REITs) and other companies that invest in real estate either directly or indirectly through development, management, or ownership, including property agencies.
S&P 500 Utilities Index: An index that tracks the performance of companies in the S&P 500 Index that are primarily involved in water, electrical power, and natural gas distribution industries.
S&P Energy Index: An index that tracks companies in the S&P 500 Index that are classified as members of the GICS energy sector.
S&P U.S. Preferred Stock Index: An investable benchmark that tracks the U.S. preferred stock market.
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