Pearl Diver Floating Rate Global Income GP

Floating-rate strategies are structurally advantaged when central banks are raising or holding benchmark rates at elevated levels, because the interest coupons on the underlying loans and securities reset higher. The strategy also benefits from a wide dispersion in corporate credit quality, which allows skilled credit pickers to overweight undervalued names and avoid the losers that drag down passive loan beta. It tends to underperform in aggressive rate-cutting cycles and in credit environments where default correlation spikes indiscriminately.