RBC BlueBay Says Public Credit is ‘Far Superior’ to Private Debt

Traded corporate debt is much more attractive than private credit, according to RBC BlueBay Asset Management. “Public credit is far superior,” Tom Moulds, senior portfolio manager for investment-grade fixed income at the $534 billion firm, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s Tolu Alamutu in the latest Credit Edge podcast. “There’ll probably be a point where you do see losses and people get very concerned,” says Moulds, referring to private debt, which he doesn’t invest in. “If we did slip into a period where growth looked weaker, then I think it would be a problem,” he adds. The three also discuss impact investing, defense sector opportunities, financial debt valuations, real estate stress and European sovereign risk.

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