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New book details route to profit from volatile credit market

Tuesday, December 17, 2013
Opalesque Industry Update - A new book by Putri Pascualy, Senior Credit Strategist and Portfolio Manager for Pacific Alternative Asset Management Company (PAAMCO), reveals how investors can generate attractive returns in an increasingly volatile credit market.

Investing in Credit Hedge Funds: An In-Depth Guide to Building Your Portfolio and Profiting from the Credit Market published by McGraw-Hill explores how investors can use the hedge fund structure to profit from a variety of credit-focused investments such as high-yield bonds, bank loans and sovereign debt. Pascualy maintains that hedge funds have developed from a cottage industry for institutional investors and the ultra wealthy to a mainstream investment strategy. Many Americans have exposure to hedge funds without realizing it through their 401(k)s and pensions.

“As the Federal Reserve tapering draws near, investors are grappling with their need for return generation in an unpredictable credit market. Fundamentally, the environment for corporate credit remains moderately positive with low risk of defaults, although duration risk is still a concern,” said Pascualy. “Improving capital markets have led to increased corporate activity and we expect this trend to continue in 2014, which spells opportunities for event-focused credit investors. Given its inherent flexibility, the hedge fund structure is ideal for investing in this market and capitalizing on attractive investment opportunities.”

Investing in Credit Hedge Funds provides in-depth research on the most commonly used structuring vehicles, the legal rights and responsibilities of all parties, and the pros and cons of separately managed accounts. It provides practical, expert advice on conducting operational due diligence and best practices in mitigating counterparty risks to avoid the fates of those who suffered losses as Bear Stearns, Lehman Brothers, and MF Global went down.

Investing in Credit Hedge Funds: An In-Depth Guide to Building Your Portfolio and Profiting from the Credit Market is available at Amazon.com or at select book stores.

Press release

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