Head of Direct Lending de Federated Hermes

Laura Vaughan: “The Private Credit Asset Class Have Acted as An Inflation Hedge to a Certain Degree”


Photo courtesyLaura Vaughan, Head of Direct Lending de Federated Hermes.

Author: Beatriz Zúñiga

  1. Over the last 12 months, the attractiveness has increased further as the underlying investments in private debt are floating rate loans. So as EURIBOR, for example, increased from negative to close to 4%, this additional yield flowed straight through to investors’ return
  2. The sharp rise in interest rates from record lows over the last two years has resulted in higher yields at a time when inflation has been rising, allowing the private credit asset class to act as an inflation hedge to a certain degree