NN Investment Partners sees alternative credit boom

By Daniel Lanyon on 30th July 2018

Alternative Credit

The non-bank lending asset class is rapidly building a reputation for robust returns with low correlation with mainstream fixed income and equity markets.

NN Investment Partners sees alternative credit boomImage source: https://goo.gl/GN4hrH

NN Investment Partners saw a 33 per cent growth in its specialist alternative credit boutique in terms of assets under management in 2017, according to a statement by the firm.

In the year to 31 December 2017 the Netherlands-based asset manager says that it saw committed funds from institutional investors rise by a third into its various alternative credit strategies when compared to 2016. The firm had about €14bn of assets under management at the end of 2016  within alternative credit.  

Han Rijken, head of specialised fixed income at NN IP says that alternative Credit is now, owing to recent strong returns with low correlation with mainstream fixed income and equity markets, seeing a greater uptake among investors.

“Given its focus on sometimes illiquid markets, as well as complex and thematic drivers, there is strong scope to deliver additional returns through active management,” he said.

“Managing this asset class does not only consist of traditional asset management, but also sourcing, structuring, trade execution and creating a sustainable investment solution to the specific needs of the investor (eg. regulatory compliance),” he added.

In addition to this, he adds that the varied risk premia and different underlying borrowers enables alternative credit to offer strong diversification characteristics.

NN Investment Partners recently commissioned research from 100 institutional investors to which revealed an increasing overall demand for the asset class among investors wishing to hedge against a rising rates environment.

Comments

AltFi London Summit 2019

The UK's oldest and best-loved conference for fintech and alternative finance insiders returns for its sixth iteration at etc.venues. We'll showcase the best of the UK's digital banking, online lending and digital wealth sectors through a series of uniquely in-depth discussions and presentations. Open Banking will be in full flight, just over a year on from its launch, and will be a central theme at the event.

18th March 2019


Companies in this Article:

NN Investment Partners

More like this:

P2P fund eyes dividend growth

30th November 2018
Daniel Lanyon

European private debt market hits $200bn in assets

28th November 2018
Daniel Lanyon

Honeycomb fund ups leverage after strong run

26th November 2018
Daniel Lanyon

Private debt market grows to record size

7th February 2018
Daniel Lanyon