Private debt, real assets in favour as more rate hikes loom

Private debt and real assets are turning into favoured options for institutional investors in Asia, as rising interest rates continue to place upward pressure on financing costs.  Private equity, however, is plagued by vaulation concerns, at least for some institutions. “In a rising interest rate environment, investing in private debt would generate an appropriate return as the coupon income is typically linked to floating base interest rate, and private debt offers risk mitigat…