In what should be a surprise to no one, energy has been one of the better performing sectors since the joint U.S.-Israel airstrikes on military targets in Iran on February 27, although it has given up some ground since a two-week cease fire was announced last week. The S&P 500 is up slightly during this period (+1.2%) while the energy sector has gained 0.4% (price appreciation, excluding dividends).

What may surprise you is that gain is only good enough for fifth place in the sector rankings since February ended. Technology is on top with a 5.9% gain. Technology beating energy during an oil price spike is surprising enough, b

Asset-Based Lending

While headlines related to private credit’s direct lending sector have captivated market participants over the past month, there exists a meaningful investment universe, each with distinct characteristics, under this broader umbrella. Following direct lending, the asset-based lending (ABL) industry has experienced consistent growth and renewed investor interest.

ABL is a form of lending in which loans are primarily secured by a borrower’s tangible assets rather than by cash flow or earnings. Common forms of collateral include accounts receivable, inventory, equipment, and, in some ca

Outside of energy commodities, capital markets posted a downbeat March as cross-asset volatility spiked in response to the outbreak of hostilities in the Mideast, and kicked off April in similar, choppy fashion before posting a swift bounce following last Wednesday’s two-week ceasefire agreement. While a positive breakthrough, it may still be a little too early to sound the ‘all clear’ as the flow of oil through the Strait of Hormuz remains constrained. Don’t forget, behind today’s headlines, the economy is still dealing with negative trade and immigration shocks and a positive artificial intelligence (AI) shock.

Private markets benefited enormously from the post-Great Financial Crisis era of ultralow interest rates that stretched through much of the 2010s and into the early 2020s. Amid regulatory change and muted returns in traditional fixed income during this time, investors were increasingly pushed into alternative areas of capital markets in search of yield. Private credit, in particular, emerged as a favored destination for institutional capital, including pensions, endowments, and insurers. The sheer volume of capital entering the space created competitive pressures that, in hindsight, were distinctly late cycle. Spreads compressed, underwriting