Last month, the Federal Reserve cut interest rates for the first time in over four years, with more cuts expected into early next year. An analysis of credit investments and venture capital (VC) returns over the past 20 years reveals differing performance in various macro environments. Credit closely mirrors buyout strategies, showing similar returns in 28% of quarters. Each strategy performed differently during recent recessions; credit thrived post-financial crisis, while VC surged after the COVID downturn. Despite anticipated VC gains from rate cuts, credit is expected to maintain consistent performance throughout the 2020s.

Read the full article here