Credit funds: beyond yield, the value of liquidity

After years of euphoria, private debt is beginning to show signs of slowing down. Since the first funds suspended their redemptions, investors have been asking questions. They are being reminded of a reality: the illiquidity premium exists precisely because it compensates for a specific risk – that of not being able to easily exit their positions.

Furthermore, the reduction in the size of the balance sheets of intermediate banks has significantly affected the liquidity of corporate bonds.

In this context, what options are available to investors in the credit market today to reconcile return and risk without sacrificing liquidity?

Are investors seeking to maintain return targets comparable to those of private debt condemned to focus exclusively on the high-yield segment? How can equivalent strategies be built in investment grade? What risks must be accepted to preserve these return levels? When should one segment be favored over another? Does peace of…