Financial TimesFinancial Times

Big hedge funds shop for bargains in corporate debt markets

By Laurence Fletcher

08 Nov 2022 · 3 min read

Editor's Note

The sell-off in corporate debt has gone too far, according to some of the world's best-known hedge-fund managers. Now they see an opportunity to pick up some bargains.

Big-name hedge funds are snapping up bargains in junk bonds and other corners of the corporate debt market, as they bet a sell-off sparked by the darkening global economic outlook has gone too far.

Corporate debt has been hard hit this year by fears that steep increases in borrowing costs will lead to a wave of defaults at groups that have grown accustomed to years of easy money. Interest rates for risky borrowers have soared.

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