Let the world's deleveraging work in your favor.
By Joseph Marren
During the next decade investors in credit-related arbitrage and relative value hedge funds are likely to experience risk-adjusted returns that are significantly above historic norms. This compares with highly risky market conditions for long-only credit managers and a mixed outlook for equity investors.
Generally, credit-related arbitrage and relative value hedge fund managers need two market conditions to be able to generate attractive returns: volatility in the credit markets and credit spreads that are above average levels. It is highly probable that both of these conditions will exist in