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Private Credit’s Enduring Grip: Franklin Templeton CEO Bets Big as Yields Lure Investors Despite AI Shadows
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Private Credit’s Enduring Grip: Franklin Templeton CEO Bets Big as Yields Lure Investors Despite AI Shadows

WebProNews·Name·about 1 month ago
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Jenny Johnson doesn’t mince words. Private credit is here to stay. The Franklin Templeton CEO laid it out bluntly at the Semafor World Economy summit: banks pulled back after the 2008 crisis, leaving a void that nonbank lenders rushed to fill. Tightened capital rules forced the shift. Private funds stepped up. And they’ve delivered yields that public markets can’t match. Investment-grade private loans fetch an extra 150 basis points over traditional bonds. High-yield options? Up to 250 or even 400 basis points more. Compound that over 20 years, and a mere 1% edge swells retirement pots by 20%. Johnson urges investors to gut-check their tolerance. Can you handle 5% to 10% illiquidity in your portfolio? If yes, grab the premium. If not, steer clear. Yahoo Finance captured her fire: “It drives me nuts when anybody says, ‘Oh, it’s more liquid than you think.’ It is absolutely illiquid.” But liquidity gripes aside, the sector’s scale demands attention.…

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