Rowan contrasts tolerance for equity volatility with outsized reaction to single private credit defaults.
“We don't think anything of Nvidia or the S and P going up or down 10 or 15%, and yet one private credit loan or one broadly syndicated loan defaults and people lose their mind.”
Rowan says investors use levered lending to reduce risk compared to equities and high yield bonds.
“We don't think anything of Nvidia or the S and P going up or down 10 or 15%, and yet one private credit loan or one broadly syndicated loan defaults and people lose their mind.”
Rowan contrasts tolerance for daily equity volatility with outsized reaction to small private credit moves.
“In fact, every day the market goes up or down, but we don't think of those as losses. And yet, the private credit market moves down two points and the world comes apart.”