Long Short Credit

Investment Criteria

The Long/Short Credit team adopt a highly selective approach to identifying target investments across the 300-400 European fixed income credits rated from ‘A’ to ‘CCC’.

The team identify companies with improving cashflow measures which are not reflected in current credit prices (for long positions) and companies with deteriorating cashflow measures not reflected in current marks (for short positions). Key metrics examined include:

  • Cashflow (i.e. Gross margins, EBITDA, cashflow from operations and free cashflow)
  • Liquidity
  • Leverage
  • Covenants

Once indentified, the team select the optimal instrument (bond, loan, CDS) and seniority in the capital structure. Position sizing is then based on conviction and liquidity.

For more detail on our products, see your Funds Centre. Prospective investors should also register to login to our secure website.