More on credit opportunity funds
Thanks to the kind of lending practices that precipitated this summer’s credit crunch, many managers in the credit markets have long seen distressed debt as the next big thing. As long ago as 2005, firms such as Intermediate Capital Managers, Blue Bay Asset Management and Babson Capital were establishing credit opportunity funds to take advantage of stressed and distressed assets should the market turn. Now that it has, their ranks have been joined by a surge of new entrants with the same strategy in mind. But those now looking to set up such funds will be joining a very crowded marketplace....
