Canadian Alternative Investments in Pensions has quoted Akin special situations and private credit practice co-leader, Ranesh Ramanathan in its article “Private Credit Is a Good Pension Investment…For Now.” The piece discusses the growth of Canadian pension investments involved in private credit, and how long this will continue if various macroeconomic factors such as high interest rates and a bank pull-back from areas of commercial lending shift.
“The higher interest rate environment makes it more attractive when they’re trying to match it to their pensioners,” said Ranesh. “For a long time, they were too low. When the risk-free rate was zero, you’re charging 5% or 6%. It’s become very attractive for someone who has a fixed liability.”
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