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3 Fraser Street #06-23 DUO Tower
Singapore 189352
T +65 6622 9022
F +65 6820 6808
© Copyright SeaTown Holdings International 2025.
By Heather Ng, AsianInvestor
Is Asia’s private credit market insulated from the West?
SeaTown’s Deputy CIO and Head of Private Investments, Eddie Ong, recently provided his views to AsianInvestor on this topic, shedding light on how private credit in Asia can offer meaningful insulation from the overheating conditions seen in developed market private credit, which are characterized by rising leverage levels and relatively looser lending standards.
Eddie shared that contrary to the West, where most private credit deal structures are covenant-lite and highly dependent on a borrower’s cashflow to repay the loan, the bespoke credit covenants and collateralized structures featured in Asia private credit can provide significant downside protection for investors.
“Relative to the West, Asia private credit is a less crowded investment. The pricing of private credit in Asia is still at a meaningful premium over the West and largely on a fixed rate basis, making it less vulnerable to a drop in pricing from a tapering of the fed funds rate, albeit with shorter loan maturities. In addition, features like hard collateral protection, debt incurrence and maintenance covenants, credit rating triggers, corporate and personal guarantees that are distinct in Asia private credit results in enhanced risk mitigation for Asian investors.” Eddie shared.
Read the full article by AsianInvestor here (subscription may be required): http://bit.ly/43zZyjD
3 Fraser Street #06-23 DUO Tower
Singapore 189352
T +65 6622 9022
F +65 6820 6808
© Copyright SeaTown Holdings International 2025.