The State of the Credit Market Zip Code

Says PPuri: In a lower growth environment, with a higher rate

environment, potentially a sustained higher inflation environment, tightening

financial conditions. I actually think in that 8 to 10% zip

code, that's a pretty good place to to to earn yield.

However, I do think that I think credit spreads are not

indicative of it. I think a lot of that yield is coming

from base rates, over 50% of it in most instances.

So I think you kind of got to be a little bit careful in terms of where you

are. And I suspect you're going to have

moments over the next sort of 12 months where there will be some good

amount of volatility. And that volatility can come from a

variety of places. But I think you'll continue to see some

margin degradation. And I think that that probably gives you

some moments to add more risk as well. But I think, you know, short duration,

well-capitalized businesses are a pretty good spot to live in that in that zip

code of 8 to 10%.