Private Credit Defaults Will Purge ‘Tourist Investors,’ BCI Says

British Columbia Investment Management Corp. expects rising defaults in coming months that will flush out “tourist investors” from the $1.7 trillion private credit market.

“Some of these tourist investors expect private debt to be a bit like it was for the last five years, which is high single-digit or low double-digit returns with not a lot of risk or very few defaults,” Executive Vice President Daniel Garant, who’s also global head of public markets, said in an interview. “That’s a bit of an artificial environment, so we think we’re going to go back to something which is more normal.” ...