MANAGER INSIGHTS

CMBS could be hit harder than the ’08 sub-prime market, says Deer Park Road CIO

CMBS could be hit harder than the ’08 sub-prime market, says Deer Park Road CIO

Deer Park Road is maintaining an aggressive short position in commercial mortgage backed securities as the market continues to fall because of lockdown. Although the Colorado-based structured credit manager, which was established by Michael Craig-Scheckman in 2003, expects to shift to a long position in CMBS when the right entry point emerges towards the end of the year, or in early 2021.

INDUSTRY INSIGHTS

Distressed credit could exert a gravitational pull as US managers launch opportunistic vehicles

Distressed credit could exert a gravitational pull as US managers launch opportunistic vehicles

The hedge fund industry recorded USD33 billion of redemptions in Q1 according to HFR, making it the highest figure since the second quarter of 2009, as investors de-risked their portfolios. But this redemption figure could arguably be even higher come 30 June, as the full impact of Covid-19 becomes clearer.