In our latest webinar, we welcomed one of Agora’s newest managers to share their expert perspective on the evolving landscape of European credit markets. The conversation offered valuable insights into the current dislocations in the market and how opportunistic credit strategies can capitalize on these shifts.
The Evolution of the Credit Landscape
The webinar kicked off with a deep dive into the shifting dynamics of European credit markets. Over the past decade, the market environment has undergone significant transformation—from a prolonged period of low rates and limited volatility to the more turbulent climate seen in recent years. These changes have opened new opportunities, particularly in opportunistic credit, where pricing inefficiencies can create compelling risk-adjusted returns.
A Flexible, Opportunistic Approach
A key takeaway from the discussion was the importance of reacting to market dislocations rather than attempting to predict them. The manager emphasized that while macroeconomic factors set the stage for broader dislocations, the most attractive opportunities often lie in identifying pricing discrepancies at both the macro and micro levels. This flexible, opportunistic approach spans structured credit instruments like CLOs and single-name corporate credits, allowing for a diversified book of high-conviction ideas.
Why Europe?
One of the most interesting points of the discussion was the manager’s focus on the European market—a region often overlooked compared to the U.S. credit landscape. Europe’s fragmented market structure, fewer active competitors, and greater inefficiencies make it fertile ground for generating alpha in smaller, more complex situations. However, the conversation also highlighted the importance of discipline and capacity constraints to maintain the integrity of the strategy.
Navigating Risk in an Uncertain World
While the strategy is predominantly long-biased, risk management remains paramount. The manager outlined a thoughtful approach to hedging default risk and mitigating downside exposure, without simply relying on broad market protection. This approach ensures the portfolio remains resilient even in volatile market conditions.
A Market Poised for Opportunity
The discussion also touched on how recent macroeconomic shifts—including inflation cycles, interest rate movements, and geopolitical events—have created new avenues for dislocation-driven investing. With traditional credit spreads tightening, finding alpha now requires a deeper understanding of market inefficiencies and the flexibility to pivot when opportunities arise.
Why Watch the Replay?
This webinar offered a rare glimpse into how one of Agora’s newest managers approaches European credit markets with precision, discipline, and a unique perspective. Whether you’re seeking to understand the intricacies of structured credit or gain insights into opportunistic investing, this session is packed with actionable takeaways.
Watch the replay now to gain exclusive insights into this innovative credit strategy!
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About the Guest
A founding partner of a leading investment firm, this individual has extensive experience in structured credit and special situations investing.
From 2002 to 2015, they held various roles at a major global bank, most recently serving as Global Head of Structured Credit Trading, overseeing principal risk activities in corporate and financial institution special situations, as well as illiquid asset trading. Prior to this, they worked in the bank’s Global Credit Trading division, managing emerging markets credit special situations and trading credit derivatives.
Before joining the banking sector, they worked in M&A advisory at a prominent financial services firm.
They hold a degree in Computer Science from the University of California, Berkeley.
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