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“The easy money has been made; the harder money is left.”
We noted this recently from an experienced asset manager reflecting on the current investing market. It’s fairly typical of a public trading approach emerging from a period of low prices. Eventually the worry discount goes away as fear fades. Finding the next bargain then becomes a challenge.
So where’s the value in private credit to be found? As the Great Moderation in the economy, rates, and inflation ends and we enter a new era – the Great Unwind – of higher volatility, higher rates, and reduced globalization, how will that impact less liquid assets?
As our Chart of the Week shows, the thirty-year-plus cycle of decreasing interest rates is over...
✎ From the Editor: The Lead Left will be on its annual August break and will return the week of September 5.
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