Robust issuance continued into Q3, reflecting solid supply–demand dynamics. As the IG private credit market grows, however, we take a closer look at the diverse array of origination channels in this investment universe, discussing the potential benefits, drawbacks and possible misconceptions surrounding these sources of deal flow.
2025 Global Investment Outlook
January 30, 2025
Welcome to SLC Management’s investment outlook for 2025. In this report, our investment teams and solutions providers discuss public and private fixed income, real estate, infrastructure, insurance asset management and retirement plans.
What’s covered
The year ahead could be one of macro uncertainty, but also of potential opportunities, investment ideas and renewal in certain asset classes. Check out insights from our investment specialists from SLC Management, BGO, InfraRed and Crescent Capital.
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A letter from Steve Peacher
Steve Peacher
Executive Chair, SLC Management
“Sources of uncertainty remain prevalent as we head deeper into the new year. These include those of a political nature, with an incoming U.S. administration raising expectations of both growth-friendly initiatives and the more sobering impact of tariff talk. And observers are watching central banks closely, for signs of the policymakers settling into a neutral rate or adopting a more stimulative mindset.”
Macroeconomic outlook
Policy uncertainty has been driven by potential tax cuts and lighter regulation on one hand and tough tariffs and immigration enforcement on the other.
Real estate
Public REIT valuations, market volumes and certain fair value proxies suggest constructive conditions for the asset class.
Fixed income: investment grade
Robust supply and higher wages could apply upward pressures on inflation and on bond yields.
Infrastructure
Megatrends continue to drive the outlook for infrastructure, as digitalization and decarbonization increasingly overlap.
Fixed income: non-investment grade
Syndicated loans and CLO liabilities could hold some potential opportunities for attractive coupon income.
Insurance asset management
Fixed income has offered attractive all-in yields, presenting strong return opportunities for insurers.
Private credit: investment grade
IG private credit markets have experienced robust volume growth heading into the new year.
Retirement plan solutions
Longer-term bond yields rising could provide an attractive entry point for mid- to long-duration fixed income.
Private credit: non-investment grade
Asset class poised to capture potential opportunities from strengthening U.S. middle market companies, increased M&A.
