“Private credit is, by its nature, still an illiquid asset class.” No amount of wishing will make it otherwise. As a superb report by Hightower Advisors details, understanding that truth is key for retail investors to sort through today’s market noise.1
For while private credit is being held for questioning under suspicion of…well, everything, hundreds of sophisticated institutional clients are enjoying its enormous benefits. Far from redeeming their interests, the vast majority are maintaining or increasing their exposure. What do they know that others fail to grasp?
One observer remarked that managers of privates have lost control of the narrative. If the narrative is founded on the convergence of liquidity for public and private credit, that was unsustainable. The answer is not better spin, but more clarity on the distinctions.