Cheyne Credit Fund Lost 25% in March on Bets Hit by Coronavirus

London-based hedge fund Cheyne Capital’s total return credit fund lost almost a quarter of its value last month as debt markets convulsed over the impact of the deadly coronavirus pandemic, Bloomberg News reported. The fund referred to as TRCF December 2024 lost 24.7% on top of a 5.3% decline in February, according to an investor letter seen by Bloomberg News. It mainly focuses on investment-grade companies which are less likely to default on their debts and includes bets using credit derivatives. Lockdowns imposed by governments to stall the spread of the coronavirus have triggered a sharp sell-off in credit markets as investors weigh the economic impact of such measures. Even investment-grade borrowers are feeling the heat with the average cost of credit insurance on companies in the region rising to the highest since 2012. Read more