It astonishes me how much cognitive dissonance there is in this space. From apathetic investors to greedy promotors and somnambulent regulators. Without proper performance metrics, more frequent pricing and much greater transparency they are sleepwalking to significant losses.
Thanks for a very interesting post as usual! As a lambda stock investor I am quite ingnorant in everything else than stocks. Since everything is in the numbers, I would love a bit more details on your methodology to compare or "adjust" the performance of private credit to bonds and/or stocks. In other words, I would love to learn how you do the math. :)
It's all explained in the paper from the University of Ohio. The problem is that neither you nor I have access to the private debt fund data to analyse it ourselves, so we have to trust the authors of the paper on that.
Thanks for the reply, I could have thought about checking the paper myself. Indeed the data would be the issue if I would want to reproduce all the findings, but at least I can check how they do it. 👍
It astonishes me how much cognitive dissonance there is in this space. From apathetic investors to greedy promotors and somnambulent regulators. Without proper performance metrics, more frequent pricing and much greater transparency they are sleepwalking to significant losses.
Thanks for a very interesting post as usual! As a lambda stock investor I am quite ingnorant in everything else than stocks. Since everything is in the numbers, I would love a bit more details on your methodology to compare or "adjust" the performance of private credit to bonds and/or stocks. In other words, I would love to learn how you do the math. :)
It's all explained in the paper from the University of Ohio. The problem is that neither you nor I have access to the private debt fund data to analyse it ourselves, so we have to trust the authors of the paper on that.
Thanks for the reply, I could have thought about checking the paper myself. Indeed the data would be the issue if I would want to reproduce all the findings, but at least I can check how they do it. 👍