Animal Spirits Podcast Talk Your Book: Investing in Private Credit ETFs and All-Time Highs
64 snips
Sep 15, 2025 Wes Crill, Senior Client Solutions Director & VP at Dimensional Fund Advisors, and Tony Kelly, Co-Founder of BondBloxx ETFs, discuss lucrative investment strategies during market highs. They explore the nuances of Collateralized Loan Obligations (CLOs) and their advantages over traditional bonds. The conversation delves into the stability of CLOs amid rising interest rates and the importance of diversification in private credit portfolios. They also challenge common misconceptions about market peaks and behavior, providing listeners with crucial insights for smarter investing.
AI Snips
Chapters
Transcript
Episode notes
New Market Highs Are Not A Sell Signal
- Markets hitting new all-time highs is normal and happens frequently historically.
- Dimensional found average returns after new highs match unconditional weekly averages, so new highs don't predict immediate declines.
Passive Flows Don’t Eliminate Price Discovery
- Active investors still provide price discovery even if traditional active funds declined below 50%.
- High trade volumes and ETF trading activity suggest ongoing information flow into prices.
US Size Premium Is A Large-Cap Story
- The weak U.S. size premium likely reflects large-cap outperformance rather than erosion of small-cap opportunity.
- International markets show stronger size/value premiums, arguing against a global disappearance of the small-cap effect.