Risky Loans? Think Again.

For private capital investors, the recent spate of market volatility is another opportunity to show strength relative to public asset classes.

The threat of higher interestrates and spiking inflation sent equity indices on a roller coaster ride. But loan buyers looked at this same data set and voted with their feet.

Last week another $2 billion flowed into retail funds, bringing inflows to almost $7 billion for 2022. Assets in these funds total $93.6 billion, double the level from only a year ago. In contrast, $13 billion flowed out of retail high-yield bond funds…

▶︎ Read Jan 31 2022 newsletter: here

▶︎ Chart of the Week: here (via WSJ)

(Any “forward-looking” information may include, among other things, projections, forecasts, estimates of market returns, and proposed or expected portfolio composition Past performance is no guarantee of future results. Investing involves risk; principal loss is possible.)