The $24 billion alternative fixed-income manager sees beleaguered companies losing their window to refinance; but CIO Mark Okada says bearishness on the euro is overdone.
High-yield credit spreads suggest the market is sanguine about credit risks, which puzzles the inventor of the Z-Score, predictor of corporate defaults.
Distressed specialists define their terminology and give their take on the market at the second AsianInvestor/FinanceAsia Distressed and Troubled Asset Investing Summit, held in Tokyo.
Investing in distressed assets in Asia has yet to benefit from the global financial crisis, but give it time.
Once the playground of hedge funds, distressed assets are attracting more interest from private banks, boutique firms, local players, sovereign wealth funds and institutions.
But getting the right structure for fund liquidity to match the underlying assets, and avoiding recent errors in credit risk, will be challenges.