Tue, Mar 19, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

New credit hedge fund to seize distressed opportunity in US small and mid-caps

Monday, November 30, 2015

amb
Jed Nussbaum
Benedicte Gravrand, Opalesque Geneva for New Managers:

The distressed debt market, a predilection for private equity firms and hedge funds, is showing signs of profit going forward.

This year, however, has not been great, as six years of easy-money central-bank policies have kept over-leveraged companies afloat and given limited opportunities for traders. "Most distressed situations have not worked out in 2015," David Tawil, president of distressed hedge fund Maglan Capital, told Bloomberg. "It wasn’t just energy. It was anything with loads of leveraged debt on it."

According to eVestment, distressed hedge funds are down 5% YTD (to Oct.) Many distressed debt hedge funds, which had done well till 2013, jumped in oil-related industry bonds too early and suffered from the bonds’ later collapse, said Bloomberg.

The default rate is at a historic low for US corporates. And Moody's default rate forecasting model predicts that the global default rate will end 2015 at 2.7% - well below the histo......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1