FICC Focus Canyon’s Kivitz on Cycles, Risk and Uncertainty: Credit Crunch
May 29, 2025
Jeffrey Kivitz, Chief Investment Officer at Canyon Capital Advisors, shares insights on navigating market uncertainty and seizing investment opportunities. He emphasizes the importance of breaking traditional rules in credit investing and discusses the balance of macro and micro analyses as a CIO. Kivitz also explores complex investment landscapes, including distressed markets and the role of private credit. The conversation wraps up with light-hearted lessons from tennis, linking strategy and grace under pressure to effective problem-solving in finance.
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Career Shift to Credit Investing
- Jeffrey Kivitz joined Canyon in August 2008 amid the financial crisis, initially with an equity investor background.
- The firm quickly pivoted him to credit investments due to abundant opportunities post-crisis.
CIO Balances Macro and Micro
- Effective CIOs must connect top-down macro views with bottom-up micro analysis to avoid unintended portfolio risks.
- Managing conviction levels and risk exposures daily across many investments is crucial for portfolio health.
Uncertainty Creates Opportunity
- Market uncertainty complicates pricing risk and forecasting earnings, creating a dynamic but opportunity-rich investing environment.
- Credits with longer duration and liquidity can provide attractive value amidst volatile conditions.