A new executive order could radically reshape retirement investing by allowing private equity, crypto, and gold in 401(k) plans. This episode examines the factors driving the demand for alternative assets in defined-contribution plans, the potential risks to everyday investors, and why fiduciary rules and financial literacy gaps still matter. Show Notes Trump Executive Order to Help Open Up 401(k)s to Private Markets by Miriam Gottfried, Dylan Tokar, and Matt Wirz—The … [Read more...]
509: How to Invest in Private Credit / Direct Lending?
We explore what private credit, or direct lending, is and how to invest in it. We also show how it is similar to and different from investing in leverage loans and CLOs. Topics covered include: Why more companies are staying private How private credit differs from the leverage loan market Why private credit is growing so rapidly What are the benefits to private credit investing What are liquid and less liquid ways to invest in private credit Show Notes The … [Read more...]
507 Plus: Performance Attribution Revisited, Efficient Market Hypothesis, Private Credit
In Plus episode 507, we provide an update on the stock market performance attribution shared last week. We consider whether asset class pricing follows the efficient market hypothesis so asset classes can't be over or undervalued. We analyze the energy company Phoenix Capital and compare investing in its unsecured bonds to a more diversified private credit fund such as those offered by Cliffwater. … [Read more...]
483 Plus: Private Credit, BDCs, CLOs, Cash Balances and Is This Portfolio Too Aggressive
In Plus episode 483, we analyze the Virtus Private Credit ETF (VPC), which invests in business development companies (BDCs), leveraged loans, and collateralized loan obligations (CLOs). We review the characteristics of all those asset categories. We also discuss the appropriate cash balance for retirees and consider whether a retired member's portfolio has too much in stocks. … [Read more...]
245 Plus: March 2019 Mid Month Update, Inverted Yield Curve, Puts on ETFs, and a Private Lending Limited Partnership
In Plus episode 245 for the week of March 23, 2019, we look at investment conditions as of mid-March including flash PMI reports. We revisit the accuracy of inverted yield curves in predicting recessions, and what is different this time now that the yield curve has inverted. We look at why long term interest rates could increase during the next recession. David discusses his recent trade to buy puts on two non-investment grade fixed income ETFs. Finally, we look at a limited partnership … [Read more...]
