Brookfield’s Insurer Trims Private Credit, Citing Crowded Trade

Brookfield Corp.’s insurance unit has pulled back from investments in private credit as surging demand from rival bidders pushes yields down.

Brookfield Wealth Solutions started to reduce its allocation to private credit six months ago, and is almost no longer investing in the asset class now, Chief Executive Officer Sachin Shah said at the Global Insurance Summit hosted by the Financial Times Wednesday in London. Demand has compressed yields, even as the underlying credit risk is the same and the covenants that protect creditors have become weaker.