Boaz Weinstein Preps for Credit Crunch After Wins on Banking Turmoil
- Saba founder sees ‘huge problem’ brewing in private credit
- Banks already deleveraging to prepare for corporate distress
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Even after netting a tidy profit from the recent banking turmoil, Boaz Weinstein isn’t gloating. In fact, he says, the big gains for those wagering on a credit crunch are only just getting started.
That’s how his hedge fund, Saba Capital Management, is positioned — with bets on stress he says is probably already ripping through private credit and insurers. Saba runs a tail-risk strategy that thrives in dislocated markets, one of a handful that feed his flagship fund which gained 73% in 2020’s pandemic. The $4.3 billion hedge fund clocked up returns in March from banking turmoil including a trade on Credit Suisse Group AG, according to a person familiar with the matter.