Private credit, properly underwritten, offers a defensible source of income and capital preservation through the cycle. That sentence is doing a lot of work — and the qualifications matter.
Private credit lets the lender shape the structure: covenants, security, amortisation, drawdown discipline. Listed credit cannot. That structural control is what allows a thoughtful private credit portfolio to deliver attractive yield without taking unmanageable downside.
Private credit done badly — loose covenants, weak security, weak origination partners — is just leveraged equity wearing a credit label. Discipline at the origination stage is non-negotiable. The MiCredit Model exists precisely to enforce that discipline systematically.
A defensible private credit allocation should perform across rate cycles, not just in benign conditions. Floating-rate base coupons capture rising rates; senior-secured structures absorb downside; diversification across sub-sectors smooths idiosyncratic shocks.
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