Canyon Partners CIO Todd Lemkin Is Loving Hung Bridge Loans (1)

Trouble for banks stuck with unwanted buyout financing is an opportunity for investors in the $187 billion distressed debt market, according to Canyon Partners Chief Investment Officer Todd Lemkin.

“We love these hung bank bridge loans,” Lemkin said in the Oct. 6 episode of Bloomberg Intelligence’s FICC Focus State of Distressed podcast. “It’s a great place to look for opportunity.”

Lemkin’s firm is shopping for some of the debt banks are offering at steep discounts as deals underwritten in sunnier times meet resistance in a tightening credit market. In the months since the banks committed to backstopping some ...