Investors often overlook Europe when it comes to alternative credit, favouring the US market. However, this could be a costly mistake, opines Pictet Asset Management. Europe’s private credit market is growing faster than the US, offering better spreads and less competition from lenders.

Gareth Payne, Head of Credit & Alternative Fixed Income Client Portfolio Management at Pictet, notes: “Including Europe within an investor’s alternative credit portfolio – via direct lending, distressed and special situations or credit dislocation strategies – is more than just a diversification play. Due to the unique dynamics of the market landscape, investors risk leaving alpha on the table by overlooking it.”

Read the full assessment here.