In Private Credit, Illiquidity Is A Feature, Not A Flaw

AllianceBernstein (AB)4.98K FollowersFollow5ShareSavePlay(5min)SummaryPrivate credit is a key pillar of debt capital formation alongside public credit markets and bank balance sheets.In private credit strategies, including direct corporate lending, we consider illiquidity a feature, not a flaw.But there’s no free lunch with private assets: it’s impossible to capture an illiquidity premium and also provide liquidity on demand. ipuwadol/iStock via Getty Images By Matthew D. Bass Liquidity limits in private credit allow the asset class to function. Private credit is a key pillar of debt capital formation alongside public credit markets and bank balance sheets. But an importantThis article was written byAllianceBernstein (AB)4.98K FollowersFollowAB is a research-driven investment firm that combines investment insight and innovative thinking to deliver results for our clients. At AB we believe that research excellence is the key to better outcomes and as a result we have built a global firm with exceptional research capabilities. We offer a broad array of investment services that span geographies and asset classes to meet the needs of private clients, mutual fund investors and institutional clients around the world.