24 Jan 2024 1 min read

2024 private credit outlook: A question of balance

By Lushan Sun

While debt yields are high in a historic context, we believe investors should keep a strategic eye on structural trends balanced with a tactical eye on credit quality and risk-adjusted returns. Caution is needed if a recession does arrive. 


Private credit performed well in 2023, with low default rates and plenty of market activity. But, with a recession potentially on the way, will this continue into 2024?

In her annual outlook, Private Credit Research Manager Lushan Sun argues that private credit could offer many opportunities in 2024, but makes the case for cautious positioning, conservative leverage, and a focus on credit quality and risk-adjusted returns.

She also covers:

  • How and why the investment grade and crossover sections of private credit could benefit from the macro context
  • The ongoing trend toward alternative debt among corporate borrowers, and the benefits for investors

The potential opportunities offered by new real estate debt origination, even if it comes under sustained pressure in 2024.

Click here to read the full 2024 private credit outlook


Lushan Sun

Private Credit Research Manager

Lushan joined LGIM in 2021 and is responsible for private credit research within our Real Assets division. Prior to LGIM, Lushan was a senior consultant at Mercer, providing advice to UK DB pension schemes on asset allocation, portfolio construction and manager selection. Lushan has a MSci from Imperial College in Chemistry and is a Fellow of the Institute and Faculty of Actuaries. Outside work she spends most of her time pursuing her passion for food, exercise and the latest foreign dramas on Netflix.

Lushan Sun