FICC Focus State of Distressed Debt: Axar’s Axelrod Keeping Loan-to-Own Alive
11 snips
Aug 8, 2025 Andrew Axelrod, Founder and CEO of Axar Capital Management, discusses his firm's investment strategies in distressed corporate credit. He explains how focused buyers like Axar help stabilize troubled loans while emphasizing the 'loan-to-own' approach and the necessity of diligent capital commitment. Axelrod shares insights on identifying effective management teams and adhering to a strategic process during economic shifts. The conversation also touches on notable distressed cases, including the challenges faced by companies like Claire's and CommScope.
AI Snips
Chapters
Transcript
Episode notes
Seasonal Vulnerability In High Yield
- High-yield distress is low today but seasonality concentrates risk in August–October.
- Phil Brendel warns those three months are historically the worst and can trigger sharp reversals.
Founding With Seed Capital
- Andrew Axelrod launched Axar in 2015 with a small team and a seed partner that provided a couple-hundred-million dollars.
- He says that seed was enough to get lift-off but was probably too small in hindsight.
Middle-Market Focus And Check Sizes
- Axar defines middle market as companies with $100–$800m of debt and avoids billion-dollar capital structures.
- The firm targets owning at least a third of debt and writes roughly $50–$200m checks per situation.