Why break down liquidity silos?

Integrating public and private markets in our investment thinking moves us away from the idea that we should hold “traditional” liquid assets and “alternative” illiquid assets in separate buckets, says Neuberger Berman. Instead, it focuses our attention back onto balancing fundamental economic exposures—interest-rate risk, credit risk, equity risk, inflation risk. Each of these exposures can be taken with varying degrees of liquidity, which means investors can take all the economic exposures they need while also matching their portfolio liquidity profile with their unique objectives and time...