The strategy invests in single name, mid-market European Developed Markets corporate credit, targeting investments in companies that have experienced problems due to idiosyncratic cyclical structural, or secular issues. Investments could include loans, bonds, and other debt instruments.
Strategy overview
- Differentiated strategy with European mid-market focus where there are more opportunities and less competition.
- Highly experienced investment specialists with over 13 years of aggregate Special Situations experience.
- Specialists are backed by the BlueBay Fixed Income Team investment infrastructure, technology, and ESG capabilities.
- Strategy will leverage the proprietary networks of the specialists and the BlueBay Fixed Income Team as a whole.
Our approach
Investment philosophy & style
Relationships and networks are crucial to the sourcing of differentiated investment opportunities. We leverage the cross-functional BlueBay Fixed Income Team culture and the concept of idea sharing across all asset classes.
Investment Strategy
- All investment opportunities undergo a financial, legal, structural and ESG analysis.
- Our research process is iterative including input from weekly Investment Committee meetings.
- Position sizing is based on convication and fit within the overall portfolio.
- Active strategy looks to drive returns with a hands-on approach to portfolio investments.
- Strong focus on downside risk
- Look to achieve asymmetry to the upside by investing predominantly in secured or senior investments.
Portfolio construction
The strategy holds a concentrated portfolio of 15-20 investments allocated across four principal categories:
- Stressed investments
- Distressed investments
- Refinancing/Rescue financing
- Other investments including liquidations, orphaned situations, hard asset purchases, and other situations