As bond yields have risen, some investors have been questioning whether direct lending (DL) offers the same value proposition as it once did, but yields are only part of the equation. In this episode of RPM, Fabian Körzendörfer, a Managing Director on our private debt team, joins co-host Maribel Yoo to discuss how direct lending may offer attractive risk-adjusted returns. They discuss:

• DL’s lower duration risk (01:08);
• How direct lenders limit credit risk (2:57);
• Liquidity features of DL (5:36)
• Volatility of DL (9:40); and
• DL’s drawdowns (11:29)