Beyond the Yield Chase: A Disciplined Approach to Private Credit

Private credit has been a powerful source of yield for Canadian pension and benefit plans, but the landscape is changing fast. After years of abundant liquidity and low interest rates, rising borrowing costs, tighter refinancing windows and headline‑grabbing corporate defaults are exposing where leverage, sector concentration and weak underwriting have gone too far. For fiduciaries responsible for funding long‑term liabilities, the question is no longer whether to use private credit, but how to access it in a way that is resilient across cycles, aligned with governance requirements and appropriate for Canadian institutional portfolios.

This white paper, from TD Global Investment Solutions explores, a strategy purpose built to combine income potential with structural resilience. Drawing on TD Global Investment Solutions’ global platform, it explores how diversified sector and geographic exposure, disciplined underwriting, independent valuation and an open-ended structure can help mitigate some of the vulnerabilities now surfacing in parts of the private credit market. Readers will gain a practical framework to evaluate private credit allocations, understand key sources of risk and identify characteristics that can support more stable, risk adjusted income over time.

By downloading this white paper, you'll learn:

• How years of low rates and abundant liquidity contributed to recent high profile private credit stresses, and what that means for Canadian plans today
• Why diversification across direct lending, infrastructure debt, real estate debt and specialty finance can help reduce concentration risk and support more consistent cash flows
• The role of conservative capital structures, robust collateral coverage and independent third-party valuation in preserving capital when market conditions turn
• How access to a broad origination ecosystem can support selectivity, maintain underwriting discipline and seek attractive risk adjusted opportunities
• Why a defensively positioned, unlevered, open ended fund structure can better align with long term institutional objectives and liquidity needs

Access the full insights from TD Global Investment Solutions today.