Timing is key in distressed debt
The global pandemic provided another reminder that moving fast when opportunity arises is vital for managers in the space.
When covid began spreading swiftly around the world early last year, a key facet of distressed debt investing was reinforced – the importance of timing. As public and private markets alike experienced a sudden bout of volatility, some fund managers smelt opportunity and attempted to urgently corral investors into dislocation funds. Anecdotal reports suggest that some of these funds shot the lights out, but the timeframe for making serious profits was short. Left too late, the window to take action was slammed shut.