Absolute chaos at O’Hare this morning

“There are decades where nothing happens; and there are weeks where decades happen.”

Ok, I’ll bite. 1. Not sure why it's necessary to impugn those with “letters behind their name” – who actually bear the great responsibility of managing other people’s money – as if disagreement with your points below somehow violates their duty as charterholders. 2. Allocations to private credit in the wealth channel typically range between 5-10% of the overall portfolio. Not sure it’s the best and highest use of an advisor’s time attempting to arb BDC discounts for a relatively modest portion of their clients’ assets. 3. To that point, many will avoid the trade you describe now for the same reason they avoided listed BDCs in the first place (when discounts were narrower) – they have independently reached the conclusion they prefer other structures for obtaining their desired exposure to the asset class that can provide lower fees, less leverage, and more diversification. 4. I would argue the primary portfolio objective for private credit investors is high current income, not capital appreciation. For long-term strategic allocators, why introduce the brain damage of continuously rotating between listed BDC and evergreen vehicles based on sentiment-driven discount dynamics? Successful outcomes can be achieved w/o playing that game. 5. Lastly, “defaults existing” ≠ problems in private credit. Defaults have averaged ~2% over the last 20+ years. With ~10k middle market borrowers and another 1.4k BSL credits, one should expect more than 200 defaults a year. Not every failed borrower is a harbinger of the next GFC, no matter how much the anti-PC crowd desperately wants it to be.