Credit

More liquid in nature we focus on both stressed and performing credits, principally in the High Yield market.

Stressed

We seek situations where stress occurs due to over geared balance sheets, economic cycle, industry turmoil, policy changes, structural complexity.

In some circumstances the companies are performing perfectly well but being tarnished by external events e.g. from the Russian default (1998) through to the Telecoms boom/bust (2002); Ford/GM crisis (2005) to Financial Tsunami (2008/9). Our exit will occur when the external influences are stabilised/reversed.

In such  situations where the companies are exhibiting lower than expected trading results and the market has mispriced default risk we target those situations where we assess that the capital structure will ‘creak but not break’. Our exit will be achieved by fundamental credit improvement and/or credit event.

Performing

We seek to invest selectively in companies at issuance, principally those issuers private equity backed where management and sponsors interests are aligned for an exit by way of a credit event

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