In our latest Quarterly Credit Check, BBC Partners’ credit team Ted Goldthorpe and Mike Terwilliger highlight factors behind the quarter’s defining market event: the global bond selloff.
They believe the rate reset will shape portfolio construction in the years, if not decades, ahead. The new environment, in which inflation ended the post-GFC era of near-zero interest rates, broadly favors fixed income investments.
The current environment does not, however, equally favor all income-oriented solutions as evident in the elevated correlation between stocks and bonds.
As a predominantly floating-rate product, private credit provides better expected returns and a portfolio hedge amid the current inflationary backdrop.
Finally, the authors detail recent transactions underscoring the differentiation of the BC Partners platform.
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