Floating-rate assets like syndicated loans and direct lending served as a relative port in the storm as sharply rising interest rates in 2022 resulted in a historically bad year for investment grade fixed income markets.

Due to their combination of higher yields and senior position in borrowers’ capital structures, alternative credit assets have a history of delivering higher income and lower losses than other fixed income sectors.¹

Alternative credit historically has had a low to negative correlation to public fixed income markets, giving the assets attractive diversification potential.