Kaplan answer explanation:
“Private real assets (e.g., timber) have a high or strong potential to fulfill capital growth, income, and diversification from public equities. Public real assets (energy, metal, etc.) have a high potential to diversify public equities, but not to provide income or capital growth. High-yield credit has a high potential for income, a medium for diversifying public equities, and limited capital growth opportunity.”
Why does high-yield credit have limited capital growth opportunity compared to private real assets? I’m assuming it is because rates usually can only fall to 0 or a negative rate close to 0 so there’s always somewhat capped capital appreciation whereas most other assets can increase in value without restriction theoretically.