Private credit may be hot, but it isn’t for all investors and doesn’t do better than traded junk debt, according to Dimensional Fund Advisors, which manages $790 billion in assets. “There is no outperformance relative to high-yield public bonds,” Savina Rizova, the firm’s co-chief investment officer and global head of research, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Jean-Yves Coupin in the latest episode of the Credit Edge podcast. “Some people might get disappointed with some of the attributes of private credit,” says Rizova, highlighting better liquidity and transparency in public markets. Rizova and Coupin also discuss Dimensional’s expansion into mortgage-backed securities, its active exchange-traded fund strategy and the firm’s overall credit exposure and positioning.

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Tariffs are inflicting economic damage that will force more companies to default on their debt, according to Polus Capital Management. “We do have a more substantial book of single name, high-yield credit shorts,” Robert Dafforn, the firm’s chief investment officer for opportunistic credit, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Tim Riminton in the latest episode of the Credit Edge podcast. “We think about it as the foothills before the mountain as you go on the slow ascent, and then it kind of picks up more broadly after that,” says Dafforn, referring to an increase in delinquency amid high interest rates and slowing growth. The CIO of Polus also discusses trouble brewing in the chemicals, building materials, packaging and consumer sectors, as well as “equity-like returns” for distressed-debt investors.

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Yield-hungry credit investors are increasingly seeking longer-dated corporate debt, just as supply is evaporating, according to Barclays. “It’s problematic,” Meghan Graper, the firm’s global head of debt capital markets, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Arnold Kakuda in the latest Credit Edge podcast. “I worry — can we source enough assets to appeal to where the bid is gravitating, and that’s out the curve.” Graper and Kakuda also discuss the growth of private credit, value in financial sector debt, hybrid issuance, the Trump put and league table rankings for global bond underwriters.

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