medium · Private Credit market-sourcing-sponsor-dynamics
A 'Direct Lending' fund is evaluated against a 'Broadly Syndicated Loan' (BSL) benchmark. The fund's gross yield is 11.5%, while the BSL index yield is 8.7%.
After accounting for a 0.8% difference in credit losses, what is the estimated 'Illiquidity Premium' being earned by the fund?
- 0.0%
- 2.0%
- 2.8%
- 1.2%
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