Private credit may be hot, but it isn’t for all investors and doesn’t do better than traded junk debt, according to Dimensional Fund Advisors, which manages $790 billion in assets. “There is no outperformance relative to high-yield public bonds,” Savina Rizova, the firm’s co-chief investment officer and global head of research, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Jean-Yves Coupin in the latest episode of the Credit Edge podcast. “Some people might get disappointed with some of the attributes of private credit,” says Rizova, highlighting better liquidity and transparency in public markets. Rizova and Coupin also discuss Dimensional’s expansion into mortgage-backed securities, its active exchange-traded fund strategy and the firm’s overall credit exposure and positioning.

<p>Private credit may be hot, but it isn&rsquo;t for all investors and doesn&rsquo;t do better than traded junk debt, according to Dimensional Fund Advisors, which manages $790 billion in assets. &ldquo;There is no outperformance relative to high-yield public bonds,&rdquo; Savina Rizova, the firm&rsquo;s co-chief investment officer and global head of research, tells Bloomberg News&rsquo; James Crombie and Bloomberg Intelligence&rsquo;s Jean-Yves Coupin in the latest episode of the Credit Edge podcast. &ldquo;Some people might get disappointed with some of the attributes of private credit,&rdquo; says Rizova, highlighting better liquidity and transparency in public markets. Rizova and Coupin also discuss Dimensional&rsquo;s expansion into mortgage-backed securities, its active exchange-traded fund strategy and the firm&rsquo;s overall credit exposure and positioning.</p>

The Credit Edge reviews the top credit news of the week and looks at the week ahead, with in-depth research of the most important corporate sectors, trends and themes. Analysis of specific corporate bonds and credit default swaps is backed by Bloomberg Intelligence's robust data sets and indexes.

<p>The Credit Edge reviews the top credit news of the week and looks at the week ahead, with in-depth research of the most important corporate sectors, trends and themes. Analysis of specific corporate bonds and credit default swaps is backed by Bloomberg Intelligence's robust data sets and indexes.</p>

The Credit Edge by Bloomberg Intelligence

Dimensional Says High-Yield Public Debt Has the Edge Over Private

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/ddca4e0b-6598-4d7e-8ba1-b2ec0136e1f7/transcript

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