Episode Summary
Private credit is everywhere in the headlines, but are the risks as big as they seem?
Host Rob Olsen sits down with Jurgen Van Vuuren, Senior Director & Head, Private Debt, and Stacey Mouadeb, Senior Director, Private Debt to cut through the noise and unpack what’s really happening in today’s private credit market.
You’ll hear:
- What’s driving the growth of private credit
- Why recent negative headlines may be overstating the risks
- How defaults, recoveries, and diversification actually work
- Why manager selection and disciplined underwriting matter
- What today’s market environment means for investors
If you’re looking to better understand private credit and its role in a diversified portfolio, this episode offers a clear, practical perspective grounded in real-world experience.
Note for 3:54
Nicola Private Debt Fund (Net of Fees) CAD-hedged
- 1 year returns: 7.3%
- 3 year returns: 8.6%
- 5 year returns: 8.3%
- 10 year returns: N/A
- Since inception return, net of fees: 7.6%
- Since inception date: October 31st, 2017
S&P UBS Leveraged Loan Total Return Index
- 1 year returns: 5.9%
- 3 year returns: 9.3%
- 5 year returns: 6.4%
- 10 year returns: N/A
- Since Inception return: 5.4%
- Since inception date: October 31st, 2017
Bloomberg US Corporate High Yield Total Return Index
- 1 year returns: 8.6%
- 3 year returns: 10.1%
- 5 year returns: 4.5%
- 10 year returns: N/A
- Since Inception return: 5.0%
- Since inception date: October 31st, 2017
Episode Featured on:
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Disclaimer
This material contains the current opinions of the author, and such opinions are subject to change without notice. This material is distributed for informational purposes only and is not intended to provide legal, accounting, tax or specific investment advice. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be considered as investment advice or a recommendation of any particular security, strategy, or investment product. This is not a sales solicitation.This investment is intended for tax residents of Canada who are accredited investors. Residency restrictions apply. Please read the relevant documentation for additional details and important disclosure information, including terms of redemption and limited liquidity. Past performance is not indicative of future results. All investments contain risk and may gain or lose value. Returns are net of fund expenses charged to date. This podcast mentions targeted returns; actual returns may vary. All investments contain risk and may gain or lose value. Please speak to your Nicola Wealth advisor for advice based on your unique circumstances. Comparisons of the historical performance of Nicola Wealth funds or models to the historical performance of indexes, mutual funds or other investment vehicles should only be undertaken with consideration of the differences that exist between the underlying investments that comprise the compared investment vehicles. Indexes may be primarily composed of a single asset type/asset class (i.e. 100% equities or 100% bonds) whereas Nicola Wealth funds may or may not contain a combination of exchange-traded equities, marketable bonds, private investments, other alternative investment classes and exempt products. When making any comparison of historical performance, these differences and their impact on the performance of each comparable should be taken into account. ETF’s are pooled funds that track a specific investment universe that is expressed by a market index or a basket and that is listed on an exchange. Unlike a market index, an ETF incurs trading costs and other charges, including taxes. Because of these incurred costs, an ETF may underperform the market index that it tracks. ETF returns stated in this material are based on NAVs and are stated net of fees and other costs, including transaction costs. Nicola Wealth Management Ltd. (Nicola Wealth) is registered as a Portfolio Manager, Exempt Market Dealer and Investment Fund Manager with the required securities commissions.
