After a quiet start to the year in private debt fundraising, dislocation strategies have burst on to the scene with their promise of high returns amid the covid-19 turmoil. But without the resources to do proper due diligence, have investors had their heads turned?
Private equity firms and their lawyers argue that loosening the restricted payments covenant is necessary to ensure their interests match those of the borrower by keeping the sponsored company in financial good health. But it’s a controversial development, finds David Turner
The message from CLO investors is ‘come on in, the water’s lovely’ and, for the time being, this may hold true. But concerns about downgrades and lower-rated paper are growing. Irwin Speizer explores the threats
Fewer covenants can provide greater flexibility in dealing with portfolio company difficulties, but they may also prevent lenders from negotiating rescue plans with borrowers and sponsors. Andy Thomson and Andrew Hedlund investigate
An early adopter, Arizona State Retirement System has become a giant of the asset class. Andrew Hedlund visits its Phoenix offices to find out how its portfolio has been shaped and what the future holds
Marketplace lenders have a wealth of information at their fingertips, giving them what they think is a vital advantage. But why do some investors still need convincing of their merits? By David Turner with additional reporting from Andrew Hedlund and Andy Thomson
The Canadian pension has scaled up its credit operations in North America and Europe and is turning to China and India. John Graham, global head of credit investments, explains the strategy to Andy Thomson. Additional reporting by John Bakie and Andrew Hedlund