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Long-dated, high quality, illiquid credit assets can be a great investment for DB pension schemes; typically offering stable, contractual cashflows and inflation linkage, which offset liabilities. As well as a return pickup relative to their liquid equivalents. But, as with most things, there’s a catch: these assets come with several subtle drawbacks. In this report, we look at the relative advantages and hidden challenges of these assets to help you decide whether they’re the right investment for your scheme.