Money Stuff: The Podcast · Friday, August 14, 2026
Boaz Weinstein discusses the complexities of evaluating discounts and net asset values (NAVs) in private credit, particularly for BDCs. He notes that while a discount to NAV might seem attractive, factors like leverage, fees, and the accuracy of marks (gross asset value vs. net asset value) need careful consideration. He highlights that falling NAVs can exacerbate outflows, creating a reflexive downward spiral.
“So what is appeeling? Okay, So now that I've like said, what's really bad about it?”
“I think it's safe to say that we don't think that there's a lot of manager alpha these days in that space. So like those fees are going to be eaten away, those are not like for their brilliance. And then you have on top of it, you have a nav that everyone knows is too high. Okay, So let's leave aside. Where does blue Ol rank in that continuum?”
“So what about the reflexivity? You know, a term that was over used in finance very long ago, but I think is very appropate here the reflexivity of falling naves leading to larger outflows, leading to fores selling, leading to falling naves and then you're out in three or four years.”