Firm Finding Opportunities in Distressed Debt

Jason Mudrick, chief investment officer and founder at Mudrick Capital, joined Bloomberg to discuss how his firm is locating opportunities within the distressed debt space as well as current state of the distressed debt market.

Points discussed in interview:

  • It behooves firms like Mudrick Capital to begin investor fund raises prior to the next distressed debt cycle rather than in the midst of the cycle
  • Going back to World War II, the average time between recessions has averaged 63 months; the longest period was in the 90s at 120 months
  • The size of the leveraged credit market is almost twice as large as it was in 2008
  • Proliferation of ETFs and mutual funds–almost 30% of credit market sits in investment vehicles that offer investors daily liquidity–forced outflows from ETFs could exacerbate economic contraction
  • Opportunities in distressed debt: leveraged buyouts–good businesses with bad balance sheets
  • Oversold situations could be taking place in retail markets

To watch the full interview, click below:

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