Caspian Sees Junk Bonds Offering Returns Above 10% Now

Caspian Capital, the distressed debt fund that famously returned some money to investors during the pandemic because valuations were too high, sees CCC debt potentially offering double-digit returns now.

Adam Cohen, managing partner, helps oversee Caspian’s $3.6 billion in assets. He spoke with Jack Pitcher in a series of interviews ended June 6. Comments have been edited and condensed.

What do you like right now?

We think the health-care sector is incredibly investable. The airline and cruise industries are also attractive and there are other businesses that we don’t believe have too much of a recession risk. ...