Money Maze Podcast
149: The $5 Trillion High Yield Debt Markets: Trouble Ahead or Compelling Returns? - With Victor Khosla, Founder & CIO of Strategic Value Partners
Aug 1, 2024
Victor Khosla, Founder and CIO of Strategic Value Partners, oversees $18 billion in credit investments. In this insightful discussion, he shares his journey from an 'Accidental Investor' to a key player in distressed debt markets. Victor compares the U.S. and European financial landscapes, pinpointing emerging opportunities amid private equity challenges. He recounts his experience with Swissport's restructuring and emphasizes the critical need for operational involvement when managing high-yield debts. Khosla also discusses the stability offered by infrastructure investments in uncertain markets.
33:09
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Quick takeaways
- Victor Khosla's unique journey as an 'accidental investor' highlights the importance of adaptability in rapidly evolving distressed debt markets.
- The podcast emphasizes the increasing integration of operational expertise with financial management as essential for navigating complex restructuring situations in private equity.
Deep dives
The Journey of an Accidental Investor
Victor Kozler describes his unexpected transition into the investment world, highlighting his unique path as an 'accidental investor.' After completing business school and working in strategy consulting, he joined Citibank, where he was tasked with writing a business plan for distressed debt trading. This plan led to him becoming actively involved in buying and selling debt at a time when the market was just beginning to formalize. His experience at Citibank during the burgeoning days of distressed debt trading illustrates the volatility and challenge of establishing new trading norms, emphasizing the importance of adapting to rapidly changing rules in emerging markets.
