Rowan says investors move from equity and high yield to levered lending for same returns with less volatility.
“Generally, what investors are doing is they're taking money out of equity or out of high yield bonds and moving into levered lending. It's roughly the same return, and it is less volatile.”
Rowan argues private credit formation derisk economy by moving credit off bank balance sheets and democratizing it.
“It's derisking because it moved it off bank balance sheets and essentially democratized it throughout our economy.”
Rowan says investors sold equities, not bonds, to buy private credit, thereby de-risking their portfolios.
“no one sold their treasuries or their investment grade bonds to buy private credit. Investors sold their equities.”