Schroders Investor Day Presentation Deck
#TheZero is driving investors to reallocate to private debt
Interest rate spread (bps)
1,200
1,000
800
600
400
200
O
Liquid Credit
£ AAA £ BBB $ BBB $ HY
Illiquid Credit
lll
Infra Debt Infra Debt RE Debt RE Debt RE Debt Direct Opport.
(€ IG) (€ Sub-IG) (IG) (Snr. Loan) (HY) Lending
Historical loss rates (net of recoveries)
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
IG Corporate
Bonds
Senior
Infra Debt
Senior Real Estate
Debt
Junior
Infra Debt
HY Corporate
Bonds
Mid-Market Direct
Lending
Source: Ares Management Corporation, Bank of America Merrill Lynch, Callan Associates, Cass Business School, CBRE, De Montfort University, Moody's, Preqin, S&P LCD and Schroders, 2020.
Note: IG and HY corporate bond credit loss rates incorporate default losses (default rates adjusted for recovery rates) and price changes arising from changes in credit quality (net downgrade losses). Figures are shown for illustrative
purposes only and may not be reflective of credit spreads or default experience on any individual investment or portfolio.View entire presentation