The Credit Edge by Bloomberg Intelligence RBC BlueBay Says Public Credit is ‘Far Superior’ to Private Debt
Sep 4, 2025
Join Tom Moulds, Senior Portfolio Manager at RBC BlueBay, as he discusses why public credit trumps private debt. With over a decade managing European corporate strategies, Moulds emphasizes the advantages of liquidity and visibility in public markets. He also touches on the rise of financial stress in real estate and the interplay between defense spending and sustainable investing. With lurking macro risks, Moulds offers insights on navigating today’s turbulent credit landscape and the potential pitfalls of private debt investments.
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Run Low Beta, Hunt Alpha
- Tom Moulds says spreads are extremely tight so BlueBay runs very low credit risk and focuses on alpha, not large beta bets.
- He finds more dispersion now than during prior ECB-buying periods, creating selective opportunities.
Be Selective In Investment Grade
- Be selective within investment grade, leaning into subordinated financials and hybrids where research uncovers value.
- Avoid indiscriminate long positions in the tightest parts of the market and focus on idiosyncratic ideas.
Financials Offer Durable Value
- Financials look attractive because regulation and profitability improvements justify tighter pricing versus non-financials.
- Subordinated financials and AT1s still offer yield if you are highly selective and do deep credit work.