September 13, 2024

The Role of a Public Credit Strategy in a Diversified—and Fortified—Fixed Income Portfolio

Featuring: Parul Garg, Rita Silvan

In this discussion, hosted by Rita Silvan, Parul Garg, Pender’s distressed credit expert in default securities, reorganizations and recapitalizations, discusses the impending catalysts for generating meaningful alpha in distressed debt in the next 3-to-5 years, and how a public credit strategy complements investing in private credits. She explains the various approaches to creating value and managing risk in both the Pender Credit Opportunities Fund and Pender Corporate Bond Fund portfolios.

Key Takeaways

01:20	A discussion of the bull market case for stressed and distressed investment strategies during the next 3-to-5 years and how to identify the signals of a spread widening cycle.
05:05	Beyond Beta: The importance of manager skill in choosing securities, understanding company fundamentals, and expertise in restructurings.
08:07	How public and private credit strategies can work synergistically in a fixed income portfolio.
10:57	A discussion of what constitutes an “edge” in distressed debt investing and how to acquire it.
17:04	The advantages of focusing on businesses that have lower capitalizations.
19:13	Distressed credit opportunity funds are still rare in Canada.