Beach Point, $17 Billion Manager, Eyes Distress in Credit (1)

Beach Point Capital Management is eyeing opportunities to seize on a bifurcation in credit markets brewing as interest rates begin to weigh on risky borrowers.

“With half of high yield trading at spreads below 200 basis points, half of the loan market trading at prices greater than par, you still have that lower decile within both of these asset classes that is trading at stressed and distressed levels,” Sinjin Bowron, a portfolio manager at Beach Point, said Tuesday in a Bloomberg Television interview. “That leads to just credit volatility, but also potential opportunity as those situations develop.”