Skip to content
Homepage
Contact

Private Debt: real tensions, but limited contagion

Private Debt: real tensions, but limited contagion
  • Daniel Varela

    Daniel Varela Chief Investment Officer

  • AGEFI

    AGEFI

Private Debt: real tensions, but limited contagion

In a recent contribution to L’Agefi, Daniel Varela, Chief Investment Officer at Piguet Galland, looks at the current dynamics shaping the private debt market.

This segment, which has experienced strong growth over the past decade and now exceeds $2 trillion in assets under management, has become a key source of corporate financing, particularly in the United States.

The shift in the interest-rate environment since 2023 has, however, exposed certain vulnerabilities: rising financing costs, pressure on highly leveraged companies and episodes of stress affecting some funds. These developments primarily reflect a phase of normalisation.

Nevertheless, the risk of contagion to traditional bond markets remains limited, notably due to the segment’s relative size, its illiquid nature and the structure of its investor base.

In this context, the central scenario remains one of a gradual adjustment, with localised losses and greater dispersion in performance.

Read the full contribution on the L’Agefi website (french only)

Authors

  • Daniel Varela

    Daniel Varela

    Chief Investment Officer

    linkedIn

    A graduate of the University of Geneva in Business Administration with a specialisation in finance, Daniel Varela began his career in 1989 as a fixed‑income portfolio manager. He joined Banque Piguet & Cie in 1999 as Head of Institutional Asset Management, also overseeing the Bank’s fixed‑income analysis and management. In 2011, he took charge of Piguet Galland’s investment strategy and the Investment Department. He has been a member of the Executive Committee since January 2012, serving as Chief Investment Officer.

  • AGEFI

    AGEFI

    linkedIn

Contact us

Get in touch
webinar_events

Webinars & events

  • Webinar replay

    Webinar Strategy & Market Update 2nd Quarter 2026

  • Webinar replay

    Strategy & Market Update, 1st Quarter 2026

  • Webinar replay

    Strategy & Market Update, 4th Quarter 2025

Slide 1
Slide 2
Slide 3

Academy

  • wealth_solutions Wealth solutions

    Build, grow, and preserve your wealth.

  • Pension_planning Pension planning

    All you need to know about pension planning for people and for businesses.

  • Financing Financing

    Financing options for your real estate project.

  • Investment Investment

    Resources to learn the fundamentals of investment or to specialize.

  • wealth_solutions Wealth solutions

    Build, grow, and preserve your wealth.

  • Pension_planning Pension planning

    All you need to know about pension planning for people and for businesses.

  • Financing Financing

    Financing options for your real estate project.

  • Investment Investment

    Resources to learn the fundamentals of investment or to specialize.

Slide 1
Slide 2
Slide 3
Slide 4
Learn more