05/18/2023
Private debt funds seem to be the latest too-good-to-be-true asset class on Wall Street. Private debt funds claim to offer high returns with minimal risk. One fund even shows that its investors have earned ten units of return for each unit of risk. U.S. stocks have historically offered about a half unit to three-quarters of a unit of return for each unit of risk, so this private debt fund is off the charts in terms of return to risk ratio, or is it?...
Private debt funds seem to be the latest too-good-to-be-true asset class on Wall Street. Private debt funds claim to offer high returns with minimal risk. One fund even shows that its investors have earned ten units of return for each unit of risk. U.S. stocks have historically offered about a half....