Robert Armstrong

And without boring you with the mathematics of portfolio construction, it's better to have an uncorrelated portfolio.

The returns from different things in your portfolio are

moving in different directions makes the whole thing, the return for the level of risk superior in an uncorrelated portfolio.

Now, it may not really be uncorrelated.

The appearance of uncorrelation is created by the fact that the thing isn't marked to market every day, like your bond, your junk bond portfolio, your equity portfolio or whatever else.

But that's a very important feature of why people like this product so much.

There's a lot there.

If you could speak to all of it.

You've given us a lot to think about.

Let me complicate it even further.

The point, there is two issues there.

One of them is with private credit that you need to try to keep separate.

One of the issues is lack of transparency.

How much do we know about the performance of the underlying loans?

And how much do we know about what they are worth when they are not mark to market every day?

And, you know, you might have greater or lesser transparency depending on the product.

Liquidity is a separate issue, right?

But the two kind of converge, right?

Because when people get nervous, rightly or wrongly,

You know, maybe this AI thing is really worth worrying about, but maybe it's not.