Why Europe's Pension Funds Are Betting Big on Private Credit

Europe's pension funds are quietly shifting billions from public bonds into private credit — a structural change that could reshape the continent's capital markets and risk landscape. Lucas and Luna break down the forces behind this migration: low yields on government debt, the search for income in an aging population's retirement portfolios, and the regulatory push via the European Long-Term Investment Fund (ELTIF) framework. They look at the numbers: Dutch pension giant ABP has allocated nearly 12% of its €500 billion pool to private debt, up from 5% three years ago. The Bank of England warns that illiquidity in these funds could amplify a future crisis. With the ECB's rate path uncertain and the Iran War still pressuring energy markets, the hosts ask: is this a smart diversification play or a hidden systemic risk? #PrivateCredit #PensionFunds #Europe #CapitalMarkets #ECB #ELTIF #ABP #BankOfEngland #Illiquidity #SystemicRisk #Economics #Investing #Retirement #Bonds #CreditMarkets #FexingoBusiness #BusinessPodcast #EuropeanEconomy Keep every episode free: buymeacoffee.com/fexingo