European direct lending funds aiming for returns as high as the mid-teens may be taking on too much risk, says Andrew Jackson, head of fixed income at Hermes Investment Management. He also expresses concern about leverage and the way it is adding further risk to the equation.
WATCH: Why 12-15% return doesn’t seem right
Funds may be doing direct lending deals they are not comfortable with to try to achieve high returns. Andrew Jackson of Hermes urges caution in this two-minute video