July's intensifying volatility led to the worst monthly performance for the high-yield market in five years. As spreads on credit and leveraged loans widened drastically, the Absolute Return Distressed Index felt the repercussions, falling 1.20% for the month to total 5.25% YTD. July marks the first time in 20 months that the Distressed Index has ended in negative territory.
While many funds struggled to readjust their books, a few firms managed to produce positive returns. MKP Credit outperformed its peers, finishing with a 4.52% gain. Also faring well was the DKR Wolf Point program, which climbed 2.67% to