Can anyone give some of the advantages of being a credit PM over an equities PM? With credit returns in single digit, it seems quite a bore… thinking about a junior position
Depends where your job hunting of course. Credit funds do not necessarily return single digits, while equity funds do not necessarily return double digits. I can just name a few of the big credit players that target mid-teen RoR’s… Avenue Capital King Street Capital Management Marathon Asset Management Stanfield Asset Management …the list goes on. The point being that credit funds are not necessarily tame by virtue of their asset class. Equity-like returns can be achieved two ways: via leverage or by purchasing distressed credits. That statement simplifies the credit universe a bit but I’m just using this for illustrative purposes.