Jeffrey Fulk
speaker
308 appearances
1 recordings
1 series
first heard Feb 2026
last heard 5 Feb
Jeffrey Fulk’s voice in public audio — every appearance, attributed to the second.
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recordings per month · last 12 monthsRecordings per month over the last 12 months — 1 in all, peaking in Feb 2026 with 1.
Appearances
If you were to invest in individual loans...
they're oftentimes done by appointment or then you'd have to go into a mutual fund and the mutual funds have their own issues, especially around passing through of taxes.
And so the ETF has become a very clean and easy way to gain access to high yield in the leveraged loan market.
And I would expect that market to continue to grow.
And why that is so important from our perspective is as there's been this ETFization of credit markets more broadly,
There's this inherent risk that because the ETFs can be traded and traded in the same way that an equity security or an equity ETF would trade, the potential for those asset classes to collapse in correlation, especially when there's a risk off environment where people are selling investments more broadly.
The ability to kind of sell those ETFs means that investors may distinguish less between are they selling a fixed income ETF or an equity ETF.
And so you have this potential for volatility and the movement away from intrinsic value on the credit side to be more apparent.
just given where we've gone on the ETF side.
And I think that's super interesting within the context of how credit markets have evolved over time.
So if you went back to the 80s, the correlation of a credit security to equities was typically zero to 0.2.
In the 90s and 2000s, when you had kind of WorldCom and some of those credit-related issues, it got as high as 0.6.
Right now, we're probably running in the 0.4 to 0.5 range from a beta perspective.
And so the worry there is if you get a sell-off and that beta goes to 0.8, you're not really getting diversification from...
your credit investment think you were hoping.
And so this concept of a 60-40, you know, potentially has this correlation risk involved in it.
Whereas on the private credit side, there's no risk that it can trade in that manner.
The pricing is really tied to the intrinsic value and the underlying ability of that company to make its interest payments.
And so even in a more difficult environment, the correlation of the private credit
portfolio to an equity portfolio should be very different.
Showing 161–180 of 308 · page 9 of 16
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