KKR & Co. Inc.
KKR,
released a macroeconomic report titled Regime Change: The Benefits of Private Credit in the ‘Traditional’ Portfolio on Wednesday. KKR said the traditional 60/49 portfolio of 60% stocks and 40% bonds “might hit back in the near term,” but that greater use of alternatives, particularly personal loans, would provide more diversification and inflation protection. KKR promotes a 40/30/30 equity-bond alternative allocation. The alternative allocation includes a 10% portfolio exposure to private loans, KKR said. “Now is a particularly attractive time to allocate capital to private credit, which is benefiting from a variety of factors including retreats from traditional lenders, improved credit conditions, higher absolute returns and access to higher-quality counterparties,” KKR said. Shares of KKR are down 33% in 2022, compared to a 15.7% loss for the S&P 500
SPX,
