UBS Asset Management and NMG Consulting have released new data showing that large institutional investors, managing over US $8 trillion, are increasingly treating public and private credit as part of a unified allocation strategy. The research highlights a growing appetite for hybrid credit portfolios that blend investment-grade bonds, syndicated loans, and direct lending to optimise yield, governance, and resilience.
This shift signals a structural evolution in fixed income allocation. For asset owners with internal capacity or strong manager oversight, private credit now offers covenant-level control and downside protection, features once only found in public debt. The result is a more flexible, risk-aware approach to long-term capital management across the credit spectrum.
