Portfolio Insight – Sponsored by Legal & General Investment Management
SECURE INCOME ASSETS: PROVIDING CERTAINTY IN AN UNCERTAIN WORLD
Volatility, economic downgrades and fears of a rise in defaults may have some public market debt investors concerned, but there is an alternative for those who manage income-generating portfolios. Private debt secured against tangible assets, such as property and infrastructure or issued by housing associations and utilities, could provide a much- needed layer of security during such troubled times.
Indeed, secure income assets offer an illiquidity premium and could provide downside protection at attractive valuations, if you know where to look. To explore this assets class, and examine its benefits, risks and the role it plays in portfolios, we spoke to the private credit team at Legal & General Investment Management to find out how to navi- gate the secure income asset universe.
Issue 93 | May 2020 | portfolio institutional | 27
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