Alternative Opportunities: Stressed, Distressed, and Special Situations
Opportunistic credit offers outsized returns, yet it is also more sensitive to credit cycles, which means that it requires investors with experience and a unique skillset. With interest-rate hikes imminent and economic growth expected to slow because of a variety of global supply chain issues, how are distressed-debt and special-situations investors navigating these market conditions? What strategies are they using to minimize their exposure to defaults? Is there a risk of overreacting?