Credit Funds Lure Big Investors Betting on a 2009-Style Rebound
- More than a dozen firms hope to raise at least $30 billion
- Funds’ returns ranged from 88% loss to 29% gain in March
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Big-money investors facing steep losses are looking at credit funds to boost their returns -- just like after the last financial crisis.
The market turmoil created by the coronavirus pandemic led to declines at pension funds, endowments and foundations comparable with 2008’s meltdown. As they plot rebounds, they are looking to the likes of Howard Marks’s Oaktree Capital Group and Pacific Investment Management Co., as well as smaller hedge funds such as Diameter Capital Partners, who collectively are seeking to raise at least $38 billion.