Performing High Yield Credit
Diversified, cash-generative, and downside-protected portfolio of performing, high yield credit investments in corporate Asia. These investments have historically had short durations of between two and three years, which can provide early return of capital, allowing for recycling and leverage, with the potential to improve the multiple. Often contrarian in nature, these are usually purchased in the secondary market and are typically securities of companies with solid business fundamentals impacted by exogenous market events and trading at substantial discounts to par value. Opportunities to make this type of investment may also arise due to stressed sellers, such as financial institutions with balance sheet management issues or portfolio managers with redemption or liquidity issues.