Investors turn to emerging markets for stable credit returns

Stephen Grootes speaks to Martijn Proos, co-head of Emerging Market Alternative Debt at Ninety One, about why weakening underwriting standards and AI exposure are testing US private credit, while emerging market private credit remains a lender friendly.

Listen to the interview in the audio player below the article.

Private credit is entering a more uncertain phase, with clear differences emerging between developed and emerging markets.

Insights from investment manager Ninety One suggest that while the US private credit market is showing signs of strain, emerging markets are offering more stable and attractive opportunities for investors.

Private credit is one of the fastest-growing areas in global finance.

The global private credit market has grown rapidly to around $3 trillion since the global financial crisis, but recent data shows that the US market is now facing pressure.

Default rates in US private credit have climbed, reaching about 9.2% over the 12 months to early 2026, the highest level on record.

Speaking to Stephen Grootes on The Money Show, Martijn Proos, Co-Head of Emerging Market Alternative Debt at Ninety One says emerging markets are less crowded, and growing at a rapid pace, unlike the United States.

"In emerging markets, the private credit market is still relatively nascent. Local banks can only do so much, and with liquidity sometimes they are constrained, and international capital still somewhat scarce."

- Martijn Proos, co-head - Emerging Market Alternative Debt - Ninety One

"In these markets you see some excellent companies, and in these markets we can typically structure and stipulate our collateral protections..."

- Martijn Proos, co-head - Emerging Market Alternative Debt - Ninety One

"Some parts of the US private credit market became heavily concentrated to software companies and software as a service company. These were typically fast growing, but relatively asset light businesses that banks typically wouldn't lend to."

- Martijn Proos, co-head - Emerging Market Alternative Debt - Ninety One