. >> later in the week we were able to get a response from ares management michael arougheti said those risks are, quote, false. >> if you look at ares and we talked about the strength of our credit performance, we've e eninvested $150 billion since we founded the firm and we had a loss rate of one basis point so, everything we've seen over the last 30 years would indicate that the risk that people are trying to argue exist in our market just isn't true. >> the numbers comparing private credit to loans made by traditional banks, leveraged loans and high-yield bonds somewhat mixed in this relatively strong economy. we obtained fresh data showing implied recovers on a direct loan was about 53% on average, which was below that of syndicated loans, but higher than high-yield bonds. for more on this debate, you can subscribe to our delivering alpha newsletter at cnbc.com/deliveringalphanews letter the fed looked into these recovery rates part of that has to do with the sectors that private credit is lending to a lot of those have fewer collateralized the recovery rates tend to be lower. it's