Finding attractive risk premia in a high-rate world

With interest rates expected to remain elevated, the search for attractive risk premia is challenging in public equity and fixed income markets. High concentrations and tight credit spreads limit potential returns. However, private markets may present opportunities for better risk-adjusted returns. Areas like private equity secondaries and private credit, including large corporate direct lending and asset-backed finance, offer diverse options. By reallocating from public markets to private assets, investors can diversify their portfolios and potentially enhance returns amid ongoing market...