Good loans aren’t made in good times
Jul 12, 2017
By Frank Mullen, Portfolio Manager
A mere 12 months ago, the world according to the capital markets was a different place. With $25/barrel oil fresh in our memories, many investors were still concerned that a China-led slowdown would send North America into a recession. Despite the fact that oil recently retracted from recent highs, the fears that used to exist subsided and were replaced by rather complacent markets.
We’ll always focus on long-term fundamental values when making a credit investment, but we understand that in the short term asset prices are driven by investor sentiment that isn’t always aligned with fundamentals.