Key Takeaways:

• Private IG combines fixed income characteristics with private market structural advantages
• It can be allocated within fixed income or private credit frameworks, depending on objectives
• It may enhance yield through greater spread contribution without lowering credit quality
• The biggest risk for many investors may be under-allocating to Private IG

“The question of whether Private IG is “fixed income” or “private credit” is less important than whether it is being incorporated at all. Both classification frameworks are valid, and both can support favorable portfolio outcomes. What matters is that allocators build frameworks broad enough to reflect the investment grade opportunity set as it exists today at a time of convergence, one that spans public and private markets and can be accessed across the full liquidity spectrum.” 

Brian Weinstein, Partner