The Multi-Asset Credit Moment Is Here
Credit spreads are at or near historically tight levels across most sectors and we are seeing a quiet reshaping of how fixed income portfolios need to be constructed.
Here at Laz Partners, it's a theme we're hearing consistently in conversations with credit leaders and allocators globally.
The problem with single-sector credit allocations
When spreads are this compressed, the math on single-sector credit allocations gets harder to justify.
A standalone high-yield sleeve, a dedicated EM debt bucket, a pure structured credit mandate – each one is offering less compensation for concentrated risk than it has in years.
The margin for error in any single sector is thinner. And the opportunity cost of staying siloed is growing.
This is pushing allocators toward a fundamentally different approach.
Multi-sector fixed income / multi-asset credit strategies where managers can rotate dynamically across the full credit spectrum – high yield, loans, structured credit, EM debt, convertibles – and allocate to wherever relative value is strongest at any given point in the cycle.
It's not just a theoretical shift.
We're seeing it play out in real time through a wave of product launches from the world's largest credit managers:
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Blackstone launched BMACX last May – its first private multi-asset credit interval fund, giving individual investors a single entry point across its $465bn credit platform.
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Brookfield / Oaktree Capital Management, L.P. just launched a UCITS version of Oaktree's Global Credit strategy for European, APAC, and LatAm investors, following an Oaktree Strategic Credit SICAV earlier in 2025.
The pattern is clear: mega-managers are taking institutional multi-asset credit track records and wrapping them in regulated, liquid structures – UCITS, interval funds, SICAVs – to meet surging demand from wealth platforms and global distributors.
The demand is structural, not cyclical:
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Flows into semi-liquid and evergreen credit vehicles have gone from $10bn in 2020 to a projected $74bn in 2025.
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Wealth channel credit flows are forecast to hit $119bn by 2026 – nearly 60% of all alternative fund flows.
In a tight-spread environment, diversification across credit sectors isn't just a nice-to-have. It's becoming the baseline for how serious fixed income portfolios are constructed.
