Debtwired! Credit opportunities during market volatility with Oaktree’s Hinchman and Parker
9 snips
May 5, 2025 
In this engaging discussion, Brook Hinchman, Managing Director at Oaktree, and Jared Parker, co-head of the team, delve into credit strategies during market volatility. They highlight Oaktree's impressive $16 billion fund aimed at opportunistic investments in liquid credits and rescue financings. The duo explores sectors facing pressure versus those with resilience, like healthcare and telecom. They emphasize the importance of diversification and strategic investment covenants while sharing insights on navigating the evolving credit landscape for higher returns amid uncertainty.
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Oaktree's Flexible Global Credit Strategy
- Oaktree invests globally across public and private credit with a flexible capital mandate.
- Their 36-year track record includes disciplined, diverse strategies focused on risk mitigation and proprietary sourcing.
Invest in Quality, Top-Structure Debt
- Focus on companies with strong moats and bad balance sheets; it's easier to fix finances than company fundamentals.
- Invest at the top of the capital structure to ensure downside protection via a large equity cushion.
Secure Strong Covenants and Control
- For new investments, seek maintenance covenants and tight restrictions on liens and payments.
- When dealing with poor covenants, buy discounted debt and secure majority group control to influence outcomes.