Editorial companion

What stands out

Henry McVey, KKR partner and chief investment officer of the firm’s balance sheet, told Scarlet Fu and Tom Keene on Bloomberg Money that the old stock and bond diversification model is fraying under geopolitical tensions and rising fiscal deficits, and that investors should consider shifting into private markets. It matters because a senior KKR portfolio chief is warning that bonds may no longer behave like a reliable hedge, forcing long-term investors to re-examine asset mixes and liquidity plans. McVey’s point is a useful prompt: private exposures can reduce correlation, but they also trade liquidity and transparency for potential returns, so selection and governance matter more than ever.