Debt markets: Investors go private for protection

The buy side is turning to private placements, not only for yield, but also for protection when the cycle turns.

As banks worldwide continue to delever and withdraw from long-term lending, it is not only the capital markets that have moved to pick up the slack. The growth in private placement activity over the last five years has been dramatic, with an increasing number of corporates taking advantage of investor appetite for direct lending. And in a future of rate rises and the end of quantitative easing, private placements could become even more attractive for investors looking to protect themselves against potential volatility.

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