Three key trends shaping the future of asset management

Staying ahead in a rapidly evolving digital and economic landscape 

At Moody's, we recognize the complexities asset managers must navigate when managing portfolios and making informed investment decisions. From monitoring holdings to identifying new opportunities and evaluating the performance of assets and securities, staying ahead requires timely data and actionable insights.  

In this blog, we explore three key trends shaping the industry’s future: the rise of private credit, the impacts of tariffs and economic uncertainty, and digital transformation leading the growing adoption of Artificial Intelligence and GenAI technologies in financial services. These trends are already making waves and have the potential to reshape the way asset managers operate. Staying informed, agile, and ready to embrace change has never been more critical. 

1. The rise of private credit

Private credit offered by non-bank institutions is reshaping capital investment by providing businesses with flexible alternatives to traditional bank lending. It plays a key role in middle-market lending, leveraged buyouts, real estate, opportunistic credit, and infrastructure. 60% of survey respondents in a study done by Institutional Investor and Moody’s expect to boost allocations to private credit, and only 10% of respondents described private credit as currently or very likely to be overvalued. 

Growth and opportunity during times of volatility

At Moody’s, we anticipate the size and scope of global private credit markets will continue to grow rapidly through 2025, driven by potentially lower interest rates, and solid economic strength in the US and Europe. Global private credit assets under management are projected to reach $3 trillion by 2028, reflecting greater momentum than in recent years, as outlined in our 2025 Outlook.

In times of economic volatility, private credit’s abundance of 'dry powder' — readily available capital — enables asset managers to act quickly and strategically. As an asset manager, this flexibility provides the ability to best optimize investments for changing market conditions. Asset managers are able to access investments more critical to take advantage of quickly changing market conditions.

Potential challenges 

Private markets now account for 70% of the industry’s market capitalization, creating new opportunities for growth. However, private credit comes with a set of challenges — a lack of transparency, regulation, and comprehensive data, along with untested resilience in economic downturns, making risk assessment more complex. Liquidity concerns and limited borrower information further add uncertainty to deals.

To thrive in this space, asset managers need robust risk management strategies, better data tools, and strong liquidity planning to capitalize on opportunities and protect investor confidence. They also require effective methods for gathering and synthesizing the limited information available on these deals.

Comprehensive private credit tools and insights for your strategy

At Moody’s, we offer a wide range of capabilities across private credit markets to help asset managers navigate complexities, assess risk with confidence, and make informed investment decisions that drive long-term value in this evolving asset class.

• Independent opinions and ratings — across diverse private credit market segments to support your investment strategy.
• Research and insights — comprehensive ratings and research coverage for private debt investment vehicles.
• Models and quantitative assessments — leveraging advanced analytics to evaluate exposures, compare opportunities, and guide decisions.
• Data ecosystem and financial statements — with seamless access to our integrated data estate across all platforms for a 360-degree view of risk.
• Calculation engines — powerful calculation engines for credit facilities, securities and funds. 

Moody’s tools, knowledge, and expertise, provide clarity and resources needed to evaluate opportunities, manage risk, and achieve long-term success in private credit.

2. Navigating tariffs and economic uncertainty 

Where will tariff rates ultimately wind up, and who will bear the cost: companies or consumers? These are pressing questions many are asking as trade relations and tariff timelines remain uncertain. What’s clear is that tariffs are likely to lower global growth, drive inflation, and strain companies with international supply chains. Both businesses and consumers may feel the effects, with confidence taking a hit and market volatility rising. 

Despite the ambiguity, certain asset classes, such as real assets, may be less sensitive to tariffs, presenting opportunities for active management. Diversification of portfolios and positioning against downside risk are critical strategies in this environment. By staying nimble, you can capitalize on these shifts before markets price in these changes. 

Keeping your portfolio intact and your investments on track

Moody’s offers deep insights into how tariffs are reshaping global trade, the economy, and businesses, helping you stay informed and navigate uncertainty with confidence. Here are three key takeaways to help guide your approach: 

1. Diversify portfolio risk 
2. Manage downside exposure 
3. Stay agile and seize tactical opportunities 

For a deeper dive into how tariffs are influencing market dynamics — and to gain clear, actionable insights to help minimize the potential impact on your portfolio — visit our tariffs topic page. 

Interested in learning how our AI-powered tools can help you analyze tariff impacts, identify emerging risks, and manage confidently in this evolving landscape? Read our recent publication to discover how Moody’s CreditView and Research Assistant can support your strategy.

3. Keeping up with the rapid pace of technology  

The Artificial Intelligence landscape is changing at an unprecedented pace. As fintech innovation accelerates exponentially, companies must not only adapt but also embrace advanced and emerging technologies to remain competitive and keep up with their peers.  

According to Deloitte’s 2025 Tech Trends report, AI is set to become an integral, unseen part of how the financial services industry does business. This AI-infused future spans most of this year’s six IT macro forces:  

1. Interaction — Special computing  
2. Information — Small language models (SLMs) 
3. Computation — AI hardware  
4. Business of tech — Operating model 
5. Cyber and trust — Cybersecurity 
6. Core modernization — Core systems 

To maximize AI's potential, timely adoption, strong foundational capabilities, and effective execution are essential. Companies must balance risks with the productivity and customer experience benefits AI offers. As the technology advances, it will unlock increasingly tailored solutions to address the specific needs of asset managers. 

Optimizing workflows, boosting efficiency

AI is reshaping asset management by delivering cutting-edge solutions that streamline operations, enhance decision-making, ease regulatory compliance, and tackle critical challenges in an increasingly complex and data-driven industry. The technology can help asset managers: 

• Automate manual tasks like creating reports and client communications  
• Boost efficiency, freeing up time for higher-value activities 
• Provide insights by analyzing portfolios and potential investments 
• Process large datasets, such as filings and earnings 
• Support compliance with evolving regulations 
• Mitigate security risks and build customer trust 

As a pioneer in delivering leading-edge solutions with an extensive track record of first-to-market innovations, Moody’s provides valuable insights into leveraging rapidly evolving technologies. Discover how to position your organization for success in the GenAI-first era in this recent Harvard Business Review feature on Moody’s as a tech innovator. 

Harnessing the power of GenAI with Moody’s Research Assistant

Combining Moody’s vast data estate with advanced GenAI technology, Moody’s Research Assistant delivers a powerful, time-saving solution that generates comprehensive risk insights, performs advanced queries, and produces implied ratings, helping you stay ahead of emerging risks while accelerating analytical workflows. 

Moody’s Research Assistant is designed to simplify and enhance your workflows by helping you assess both rated companies and companies not rated by Moody's, anticipate potential ratings changes, and monitor portfolios for risk and opportunity. 

Discover how Research Assistant can help you unlock insights, streamline your workflows, and stay ahead in a rapidly evolving digital landscape in our recent publication highlighting the platform’s top use cases for asset managers.