Opportunities from credit dislocation

Now could be time for to invest in opportunities created by credit dislocation as the shutdown from COVID-19 has resulted in the worst credit market in history.

26 May 2020

Bruce Amlicke, Chief Investment Officer and Joe Sciortino, Head of Credit Investments at UBS Hedge Fund Solutions speak to investors in a webinar to explain why now is the time to invest in credit opportunities.

Key webinar takeaways

  • March's indiscrimate selling in credit markets was followed by unprecedented policymaker support and technical challenges, leading to an uneven recovery and opportunities in dislocations.
  • We believe the best opportunity set in the slowing economy is in levered loans, CLOs, energy credit MBS and single thematic idiosyncratic situations.
  • Downgrades will likely lead to forced selling within CLOs, creating opportunities for rules-based investors to capitalize by purchasing loans of quality companies at steep discounts.
  • The ability to select survivors in energy versus those likely to default will be critical as we see opportunity to step in at attractive prices.
  • Deploying fresh capital has its advantages rather than investing in existing portfolios, alongside existing investors with different economic expectations and liquidity needs.  

Q&A:

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