The private-credit boom promises high returns and flexibility - but is the shine justified?

Private credit is booming - but beneath its reputation for stability and diversification lies a more complicated story.

In this episode, hosted by Michelle Martin, Morningstar’s Senior Analyst Arvind Subramanian breaks down what private credit really is, why borrowers and investors are piling in, and the key marketing claims investors should interrogate.

He explains how low volatility may reflect opacity rather than safety, why diversification benefits are overstated, and how floating rates can both protect and punish portfolios.

We also unpack the hidden risks around leverage, liquidity, and covenant protection.

Ultimately, private credit can play a role, but investors need to scrutinize fees, transparency, and risk.

The private-credit boom promises high returns and flexibility - but is the shine justified?
Private credit is booming - but beneath its reputation for stability and diversification lies a more complicated story.
In this episode, hosted by Michelle Martin, Morningstar&rsquo;s Senior Analyst Arvind Subramanian breaks down what private credit really is, why borrowers and investors are piling in, and the key marketing claims investors should interrogate.
He explains how low volatility may reflect opacity rather than safety, why diversification benefits are overstated, and how floating rates can both protect and punish portfolios.
We also unpack the hidden risks around leverage, liquidity, and covenant protection.
Ultimately, private credit can play a role, but investors need to scrutinize fees, transparency, and risk.

Start your day on a positive note with Live Well with Michelle Martin.

Start your day on a positive note with Live Well with Michelle Martin.

The show explores wellbeing in all its dimensions — from self-awareness and personal growth to money, investing, and everyday lifestyle. Through thoughtful interviews and engaging conversations, Michelle speaks with experts and changemakers on living and ageing well, while helping you discover new ideas — from great books on READ and inspiring voices on INFLUENCE, to practical financial insights on MONEY AND ME.

In a fast-moving world that can often feel overwhelming, Live Well offers a refreshing counterpoint — with insights, ideas and stories that help you feel informed, empowered and ready to take on the day.

Start your day on a positive note with Live Well with Michelle Martin.
The show explores wellbeing in all its dimensions &mdash; from self-awareness and personal growth to money, investing, and everyday lifestyle. Through thoughtful interviews and engaging conversations, Michelle speaks with experts and changemakers on living and ageing well, while helping you discover new ideas &mdash; from great books on READ and inspiring voices on INFLUENCE, to practical financial insights on MONEY AND ME.
In a fast-moving world that can often feel overwhelming, Live Well offers a refreshing counterpoint &mdash; with insights, ideas and stories that help you feel informed, empowered and ready to take on the day.