Silverback Targets Convertibles Now That Debt Discounts Are Gone

Silverback Asset Management is starting a credit fund dedicated to convertible bonds and winding down another launched in 2020 in the worst of the pandemic that targeted discounted corporate debt.

The Silverback Convertible Fund will open next quarter with a capital target of $500 million to $1 billion, according to people with knowledge of the plan. It will begin with money from existing investors in Silverback’s soon-to-be-shuttered dislocated credit fund, then add new investors, said the people, who asked not to be identified because the details are private.

The strategy shift follows debt prices’ rebound from their pandemic lows, ...