Big hedge funds shop for bargains in corporate debt markets

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 42 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 92%

Loans Loans Headlines News

Loans Loans Latest News,Loans Loans Headlines

Several fund managers say parts of the credit market have fallen too far relative to the risks of default, and some are starting to build up their holdings

. Get exclusive investment industry news and insights, the week’s top headlines, and what you and your clients need to know.

“We find the current opportunity set in high-yield credit attractive,” wrote billionaire trader Mr. Loeb in a recent letter to investors, referring to companies with lower credit ratings. He has raised his bets on corporate debt and plans to increase exposure as volatility accelerates, even though he does “not anticipate a quick rebound.”

After large price falls across major asset classes, “we especially favour the opportunities in credit and structured credit markets,” he wrote in a letter seen by the FT. Many of the redemptions have come in passive exchange-traded funds , which track broad indexes of bonds and that have therefore had to sell a wide array of credits when investors sell out., for instance, have dropped by more than US$10-billion since the end of 2020, mostly as a result of outflows.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 5. in LOANS

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Smart money watch: Big hedge funds shop for bargains in corporate debt marketsBig\u002Dname hedge funds are betting a selloff sparked by the darkening global economic outlook has gone too far. Read more.
Source: fpinvesting - 🏆 43. / 63 Read more »