Flat returns for core fixed income over five years
The Agg’s returns are flat since April 2019. Persistent inflation amid firm growth provides a challenging outlook for core fixed income.
![Line chart showing the Agg generated a flat return since April 2019 as it was whipsawed by a volatile rate environment. Recent inflation data could portend further challenges.](https://fsinvestments.com/wp-content/uploads/2024/04/Image20240502130505.jpg?w=250&h=150&crop=1)
Private credit attractive to sponsors and investors
Private credit has become PE sponsors’ primary source of financing for LBOs and M&A activity as the asset class becomes increasingly mainstream.
![Column chart showing private credit represents well over 50% of LBO and M&A financing since 2019, but only a small percentage of refinancing activity.](https://fsinvestments.com/wp-content/uploads/2024/04/COTW_2024-04-19_thumbnail-247px.jpg?w=250&h=150&crop=1)
Middle market companies tripled growth of large cap peers
Middle market private equity sponsors have historically provided outsized value compared to their large cap peers.
![Column chart showing middle market private equity investments driving 2.9x the revenue and 2.7x the EBITDA growth over large cap companies.](https://fsinvestments.com/wp-content/uploads/2024/04/COTW-2024-04-12thumbnail-247px.jpg?w=250&h=150&crop=1)
Outlook for private equity return drivers favor middle market?
This week’s chart looks at return drivers for middle market buyout transactions, which have generated higher realized capital multiples than large cap and may favor middle market managers looking forward.
![](https://fsinvestments.com/wp-content/uploads/2024/04/COTW_2024-04-05_thumbnail-247px.jpg?w=250&h=150&crop=1)
Private credit maintains its healthy yield premium
Amid private debt’s massive growth, this week’s chart looks at the healthy yield premium of private credit transactions compared to public markets.
![](https://fsinvestments.com/wp-content/uploads/2024/03/COTW_2024-03-22_thumbnail-247px.jpg?w=250&h=150&crop=1)
CRE investors see an improved market, but prices to lag
Sentiment has improved across the CRE market, as this week’s chart shows. But investors feel better about broad market conditions than asset prices.
![Line chart showing commercial real estate sentiment improving, but with a delta between expectations for broad market conditions and asset prices.](https://fsinvestments.com/wp-content/uploads/2024/03/COTW-2024-03-15_thumbnail-247px.jpg?w=250&h=150&crop=1)