Dan Gallen, Executive Director and Chief Investment Officer at Pallas Capital, returned to the ausbiz studio with Nadine Blayney to discuss the role of Commercial Real Estate (CRE) Debt amid ongoing market volatility.
In the face of persistent global uncertainty, private credit—particularly within CRE debt—continues to prove its strength as a defensive asset class.
Dan shared his insights, noting that senior secured private credit, supported by low loan-to-value ratios and personal guarantees, has been tested through both COVID-19 and rising interest rate cycles in Australia. With yields around 10% and robust collateral backing, the sector offers investors a resilient option to navigate uncertain times.
Private credit has long played a critical role during periods of volatility. Having been tried and tested, it stands as a safe harbour for investors—a true defensive play in uncertain times.
Watch the segment below.