Why pension funds are doubling down on private credit despite deepening cracks

Pension funds are continuing to allocate to private credit, and in some cases increasing exposure, despite rising concerns about underwriting standards, valuation opacity and sector concentration. The article signals a cautious risk backdrop rather than an immediate market shock, with attention centered on credit quality and portfolio concentration risk in private markets.

Analysis

Pension funds are continuing to allocate to private credit, and in some cases increasing exposure, despite rising concerns about underwriting standards, valuation opacity and sector concentration. The article signals a cautious risk backdrop rather than an immediate market shock, with attention centered on credit quality and portfolio concentration risk in private markets.