Liquidity remains the primary challenge in the present environment, meaning that few credit managers have ventured beyond the relatively liquid credit derivative indices. Managers including BlueCrest, Cairn Capital, CQS and Pimco are all seeking to take advantage of the unique opportunities the dislocation in the credit market has created, say market participants.
"It’s tough to put on trades and cross significant bid offers other than in the most liquid of instruments," remarks one credit manager. "Most are focused on doing slow-burn trades with little risk and making a quick turn in the highly liquid stuff." Accordingly, most of the action is focused...
