KKR's Chris Sheldon Releases Q1'25 Credit Letter

Chris Sheldon and Tal Reback published their quarterly credit letter, V for Volatility: Part II? In the note, they reflect on how volatility has returned in a more targeted way, how credit has held its ground in a shifting landscape, and why the ability to navigate across platforms and structures matters more than ever for achieving a truly diversified portfolio.

This is our second rendition of V for Volatility, a symbolic nod to the Q1 2020 note published under the same title, during what has proven to be the opening chapter of a lasting and historically significant regime change. Since then, the case for fundamental credit selection, multi-asset platforms, and nimble portfolio construction has gone from a theoretical advantage to an essential operating necessity.

With this framework in mind, Chris and Tal reflect on the themes that shaped this quarter:

• Versions of Volatility: Not All Shocks Are Created Equally
• Interface vs. Infrastructure: When the Bond Market Speaks and Correlations Break Down
• The Balance Has Shifted: Global Income Diversification