Welcome to Current Yield, Grant's Interest Rate Observer Podcast. I'm Philip Grant here with Eric Whitehead

at the Dials. We're coming to you live from our Lower Manhattan Studios. Jim is on his way back to the U.S.

from London currently. He'll be with us next time. So today we're going to turn the clock back to

last fall when we heard from

wonderful speech from Dan Rasmussen, the founder and portfolio manager of Verdad Advisors.

Last October, Dan took the stage to challenge some widely held assumptions over the performance

and credit composition of current day private equity. This is a topic that is most timely

considering the visible upheaval that we're seeing right now in stock and bond markets. So

here we are. Dan, take it away. I was joking with Dan before we started and I told him that he

may indeed be a most thoughtful and gifted money manager,

which he is, but he is also somewhat annoyingly to a professional journalist, a very good amateur

journalist whose stuff priced at zero is compelling reading. He's, he not only does what he does,

but he also writes about it and thinks about it, and he is here to tell us about one of his really interesting subjects, which is private equity.

So, Dan?

Thank you, Jim.

It's an honor to be here with all of you.

Markets are human phenomena shaped by human decisions.

And those decisions are shaped in turn by ideas and by stories.

The job of us as investors, then, is a game of meta-narrative,

to understand what is the prevailing narrative,

what are the stories and beliefs shaping human action,

and where are those beliefs wrong?

...