Hedge Funds Look at Buying CLO Managers as Loans Flounder (1)

Par-Four Investment Management is a small New Jersey-based asset manager that is suddenly intriguing to some of the biggest investors in credit markets.

It buys loans that get bundled into bonds, one of the hottest areas in debt markets this year, and a passel of money managers have looked into buying the firm in last four months, according to people familiar with the matter. The larger investors are betting the good times won’t last, and hope that owning a loan investment firm will allow them to profit when prices plunge.

Any firm that buys Par-Four would be following in the ...