With market conditions continuing to shift, advisors are still looking to find potent core fixed income approaches for their client portfolios. At Exchange 2026, Anna Paglia, executive vice president and chief business officer at State Street Investment Management, and Andrew Gosden, partner at Apollo Global Management, took part in a session to explain how their firms’ partnership is offering a way to leverage private credit to redefine a core fixed income portfolio. The panel was moderated by Todd Rosenbluth, head of research at Vettafi.
How Private Credit Exposure Stands Out
To begin, Rosenbluth asked Gosden how private credit differentiates itself from other fixed income investments. Gosden explained how one of the key differentiators between private credit and public markets is liquidity. He elaborated that private credit offers more liquidity than some anticipate or recognize, while public markets currently offer less liquidity than one would expect. As such, when the markets get dicey, there tends to be no bid in the public markets, according to Gosden.
“We see the liquidity provision that we are endeavoring to engage in allowing wealth advisors, institutions, family offices, and all sorts of asset owners around the world, to really put those public assets and private assets in the same portfolio,” Gosden said.
Fostering Advisor Enthusiasm
Turning to Paglia, Rosenbluth noted that investor cash started flowing robustly into funds like the State Street IG Public & Private Credit ETF (PRIV ) as 2026 began. Rosenbluth then asked her how advisors and wealth managers are incorporating these strategies into their portfolios.
Paglia explained that the process of building strong fund flows and investor interest was quite a journey. She and her team held countless meetings with advisors to break down how the liquidity and transparency for these funds works before the funds began to flow. However, she didn’t see that as a particular surprise.
In terms of portfolio incorporations, Paglia has noted some interesting observations. Institutional investors have tended to lean towards PRIV, while the State Street Short Duration IG Public & Private Credit ETF (PRSD ) has been favored by tactical approaches.
“Our vision was very different,” Paglia added. “We wanted to build a portfolio that did not just add to that Plus in Core Plus — we didn’t want to have something that was a Core Plus Plus. We wanted to reimagine Core Plus.”
Why Collaboration Matters
Towards the end of the session, Rosenbluth asked Paglia and Gosden about the collaboration process between their respective firms. Paglia responded that she was unsure whether the private credit funds could have launched without the partnership with Apollo Global Management. Meanwhile, she also highlighted how the ETF wrapper itself supports collaborative products.
“It’s important to have a player that is incredibly diligent and knows the processes,” Paglia explained. “You need the origination. You need somebody who can really look at the portfolio from a holistic standpoint.”
Gosden agreed with Paglia that these products could not have come together without State Street and Apollo working hand-in-hand. As an additional note, he added that the partnership sees transparency as a paramount priority for the private credit industry, for understanding both the risks and benefits that private credit can offer.
“Transparency, daily marketing, daily dealing, understanding daily ecosystems, all of those are necessary components to bring these different portfolio exposures together,” Gosden noted.
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