Private Credit Infecting Public Markets, Boaz Weinstein Says

• Weinstein is short public debt and high yield credit, viewing current valuations as optimistic.
• He uses credit derivatives for 'tail protection' and believes private credit problems can spill over into public markets.
• Cites the COVID-19 period where high yield ETFs traded at significant discounts due to liquidity needs, indicating public markets are vulnerable to private credit issues.

Boaz Weinstein, CIO of Saba Capital Management, discusses his bearish outlook on public debt and high yield credit, emphasizing the potential for private credit issues to 'infect' public markets. He highlights his strategy of using credit derivatives for 'tail protection' and anticipates further downside in high yield assets due to overly optimistic valuations and liquidity pressures.