Man Group Seeks Reward as Defaults Set to Spike on Virus

A dramatic increase in defaults during the next year due to the coronavirus will create a big opportunity for distressed debt investors, according to the world’s biggest publicly listed hedge fund firm, Bloomberg News reported. Money managers at Man Group Plc are intrigued by what they say could be the largest global distressed credit cycle in a generation. It all happened in just a month as the public health crisis rippled through economies all over the world, prompting a sell-off in sovereign and corporate bonds. That means even some stronger countries and companies could get caught up in the process, according to Patrick Kenney and Santiago Pardo, money managers at the firm’s GLG unit. “Default rates could be set to spike on a very large and potentially vulnerable global debt stack,” they wrote in a report on Wednesday. That “may create an enormous opportunity set for distressed debt funds, particularly those focused on opportunities outside the U.S.” Read more