We wrap up special series on the Top 10 #PrivateCreditMyths with the last two.
Myth #9: “Without a public benchmark, private credit returns aren’t dependable”
Private credit assets don’t trade. That distinguishes them from more volatile public credit correlated with market moves. Middle market loan yields are therefore more stable through business cycles.
Private credit also gets a premium yield to the broadly syndicated market of historically 100-200 basis points…
▶︎ Read Mar 2 2020 newsletter: here
▶︎ Chart of the Week: here (by Moody’s Investors Service)