Credit/Opportunistic
Strategy
- Market-driven activities arising from technical dislocations in the municipal market
- Acquire idiosyncratic credits that are typically mispriced due to recurring structural inefficiencies
Characteristics
- Attractive current yield
- Investment grade, high yield or non-rated
- Typical hold period of 6 to 18 months
- Instruments include minority positions in tax-exempt or taxable municipal bonds, total return swaps, credit default swaps and other synthetic structures
Fundamental Advantage
- Patient, flexible capital allows for selective deployment at attractive entry points
- Specialized knowledge of misunderstood credits in the high yield municipal market