Daniel Loeb's Third Point sees 'most attractive' credit opportunity since 2020

Structured credit a ‘compelling’ asset

James Baxter-Derrington
clock • 1 min read

Third Point chief executive and chief investment officer Daniel Loeb has argued the current opportunity set in credit the “most attractive overall since 2020” thanks to “exceptionally attractive” yields.

Writing to investors in his Q3 letter, Loeb explained that while spreads are "not extraordinarily wide", the strength of yields combined with dispersion between ‘high quality' and more complex situations provides a strong opportunity. Third Point Investors extends buyback programme as underperformance persists He argued that while overall corporate leverage is high, when the average is disaggregated public credit leverage remains "modest by historical standards", with the higher leverage levels residing in private credit. Loeb pointed to a range of opportunities in "improving credi...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Companies

Babcock to replace Hargreaves Lansdown in the FTSE 100 as defence focus intensifies

Babcock to replace Hargreaves Lansdown in the FTSE 100 as defence focus intensifies

Share price up 44.5% in 2025

Linus Uhlig
clock 20 March 2025 • 2 min read
Close Brothers sees losses mount amid sale of asset management arm

Close Brothers sees losses mount amid sale of asset management arm

£103m pre-tax operating losses

Sorin Dojan
clock 18 March 2025 • 2 min read
Blackstone-owned Hipgnosis rebrands to 'Recognition'

Blackstone-owned Hipgnosis rebrands to 'Recognition'

Portfolio of 45,000 songs and recordings

Sorin Dojan
clock 12 March 2025 • 1 min read
Trustpilot