Marathon Sees Cheap Assets Amid Dislocation in Credit

Investment firm shopping for discounted debt of about 70 cents
Avoiding energy sector, as well as travel and leisure for now

Bruce Richards, Marathon Asset Management's chairman and chief executive officer, talks about stress in credit markets, how a federal stimulus bill could impact the market and Federal Reserve monetary policy. He speaks during an interview with Bloomberg's Vonnie Quinn on "Bloomberg Markets." (Source: Bloomberg)

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By Katherine Doherty and Vonnie Quinn

March 26, 2020 at 7:24 PM UTC

This article is for subscribers only.

Distressed-investment specialist Marathon Asset Management is buying beaten-up debt amid the greatest dislocation in credit markets since 2008, according to Bruce Richards, co-founder and chief investment officer of the firm.

“When we get through this, the assets will be very cheap,” Richards said in an interview with Bloomberg Television Thursday. Marathon is eyeing debt at the top of company capital structures, as well as low-rated securities trading at steep discounts. “We’re buying quality that will recover irrespective of where spreads are,” Richards said.