Larry Swedroe

15 hours ago | larryswedroe.substack.com | Larry Swedroe

In response to requests from friends asking for book recommendations, since 1996 it has been my tradition to informally rate the investment-related and other books I read in the past year. I send the full list out along with my annual family newsletter during the holiday season. Thus the list is from December through November. Here’s my list halfway through the year. Opinions about books are very personal, so these ratings reflect my tastes and opinions, which might be very different from yours.

4 days ago | larryswedroe.substack.com | Larry Swedroe

There has been a lot of “noise” about the rising risks in private credit. The chart below shows the US default rates on direct lending vs. liquid credits. Note how having loans with PE sponsors impacts default rates. Senior secured loans would have even lower default rates (historical default losses on the Cliffwater Direct Lending Index have been about 1% but about one quarter of that for the CDLI-Senior Index).

1 week ago | alphaarchitect.com | Larry Swedroe

||Categories: Research Insights, Factor Investing, Larry Swedroe, Other Insights, Tactical Asset Allocation Research|Christian Goulding and Campbell Harvey, authors of the study “Investment Base Pairs,” proposed a groundbreaking framework for portfolio construction that challenges traditional approaches in modern finance. Their research focused on leveraging cross-asset information to optimize investment strategies and improve returns across diverse asset classes.

1 week ago | larryswedroe.substack.com | Larry Swedroe

Perpetual (also referred to as evergreen) BDCs are a type of business development company (BDC) structured to have no fixed end date or maturity. They are typically non-traded (not listed on public exchanges) and continuously offer shares to investors, allowing for ongoing capital inflows and redemptions, usually through periodic share repurchase programs.

1 week ago | wealthmanagement.com | Larry Swedroe

The private credit market has grown rapidly since the Great Financial Crisis of 2007-2008. By the end of 2023, private credit topped $2.1 trillion globally, about three-quarters of which was in the U.S., where its market share approached that of syndicated loans and high-yield bonds. Why Companies Borrow from Private LendersIn addition to private lenders providing access to credits that banks will not fund, corporations find benefits in private lending sufficient to offset the higher yields.