Opalesque Interview with CIO Clark Nicholls

28 Aug

Written By BFJ

Now is a good time to take advantage of the inefficiencies of the credit market, according to a London-based portfolio manager who is launching a European long/short credit hedge fund.
The market opportunity comprises three factors, according to Clark Nicholls, who spoke with Opalesque. Firstly, even though market spreads are at normal levels, there is an unprecedented yield dispersion between weaker CCC-rated credits and better B and BB credits (chart 1). Therefore, conducting a thorough credit analysis to distinguish healthier companies in the stressed space can create greater opportunities than in past markets.