08/26/2026
“Credit is still right for downside protection, but the type of credit matters enormously right now. Corporate direct lending is where the risks are concentrating; consumer and real property structured credit and multi-strategy hedge fund exposure are where we see better risk-adjusted outcomes. For us, credit selection matters enormously, as security/asset selection will be increasingly important if systemic economic deterioration continues.” — Hugh Merkel, CFA, Director of Investments