easy · Private Credit & Debt market-sourcing-sponsor-dynamics
A US-based LP invests in a European direct lending fund denominated in EUR. The portfolio yields 10.0% in EUR.
If US short-term rates are 5.0% and Euro short-term rates are 3.5%, what is the approximate hedged USD return for the LP?
- 10.0%
- 11.5%
- 8.5%
- 6.5%
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