After 25 years in global high yield credit, Ironshield Portfolio Manager Frits Lieuw-Kie-Song joins the Fixed + Floating podcast to discuss what makes a credit worth owning, from mispricing and downside risk to liability management exercises (LMEs), shorts and AI.
A few takeaways
LMEs have changed the game. In stressed credit, owning the debt is no longer enough. Having sufficient size to influence the outcome can matter.
AI won’t create winners everywhere. The build-out is real, but we believe the market may be pricing in success too broadly.
Where does mispricing start? Often when regulation, technology or management changes faster than the market’s assumptions.
The discussion also covers Virgin Media O2, data centres, shorts, tail hedging and lessons from 2008.
Watch the YouTube video: Frits Lieuw-Kie-Song on Fixed + Floating
Listen on Spotify: Listen to the episode
Read the article: How a Long/Short Credit Hedge Fund Decides What to Own
