Oaktree, TCW and Sona Spot event in the turmoil of the market

Credit investors are looking for new opportunities as a result of the wild fluctuations in global financial markets caused by the US China Trading War. The average distribution in the US high-yield market is about 419 basis points-which since the end of 2023 the highest remains-while prices in the leverage market have dropped below 95 cents on the dollar since President Donald Trump the week that the US raises rates on Chinese goods to 145%. Speculative businesses with exposure to tariff-related cost-especially in the retail and energy sector have already traded meaningfully and more pain can be on the way. There are some money managers who selectively add the portfolios. TCW Group Inc. According to Brian Gelfand, co-head of world credit and credit trading at the firm, added high returns and exposure to bank loans to each portfolio investing in those asset classes. “The market works out of credits with tariff -related risk,” he said. “There will be survivors in that cohort, and we want to identify it and invest at improved prices.” Blackrock CEO Larry Fink warned on Monday that most CEOs he was talking to think the US is already in a recession, while consumer sentiment has dropped on record after the second heaviest lecture. Airlines, food and drug stores and supermarkets have all seen falling sales over the past few weeks, according to alternative data compiled by Bloomberg, while some customers appear to be exchanging full-fledged restaurants for alternatives to lower prices. Higher incidents of distress and a greater demand for financing of struggling businesses mean: “We will probably invest our latest opportunistic debt fund faster than would otherwise have been the case,” Oaktree Capital co-founder Howard Marks wrote in a memo. And another event window comes from broad asset detection and exchange-traded funds, which freed the debt of debt for active managers. It is estimated that $ 6.5 billion was drawn from the loan funds this week ended Wednesday, while US high-yield funds had their biggest weekly outflow in almost 20 years, as investors ran a $ 9.63 billion net of Lipper data. Traders were swept by gyrations in the market, with some frustrated that the rally of Wednesday stopped at least the buying opportunity. One described the trading in European effects with high yields and loans as manic, with large volumes trading, while the other said that presenting the presentation of a significant size is difficult to execute. “The event has increased and we are using capital to deploy in situations,” said Owain Griffiths, a partner of Sona Asset Management, an alternative asset manager. ‘We are constructive in the long run. There are reasons to be cautiously optimistic in Europe if you are considering factors such as the fiscal stimulus coming from Germany. ‘ The firm looks at first-lien securities in less cyclical industries such as telecommunications, he added. Meanwhile, Bruce Richards, CEO of Marathon Asset Management, sees an opportunity to grow the lending of asset-backed asset as an ‘income recession’ caused by rates, lending using statistics such as earnings before interest, tax, depreciation and amortization less attractive. Yields of 10% to 12% are possible on a net internal yield base, he said, adding that “our phones start to come off the hook.” Advisory: Credit Weekly will return on April 26 week in review on the move © 2025 Bloomberg MP This article has been generated from an automated news agency feed without editing to text. First published: 13 Apr 2025, 12:56 am Ist