Parul Garg
Portfolio Manager of the Pender Credit Opportunities Fund at PenderFund Capital Management, specializing in stressed and distressed credit; frequent guest on Pender's fixed income podcasts.
1
APPEARANCES
1
PODCASTS
Jul 9, 2026
Laura BakerHOST
So maybe Prul, could you explain what exactly stress and distress credit is in simple terms?
Parul GargGUEST
So we have a simple term and we call a technical term how we define stress and distress credit.
Parul GargGUEST
So in simple terms, when a company issue a bond and tell the maturity, the performance of the company, the balance sheet of the company and the state of where it is operating is not always good.
Parul GargGUEST
It goes through its bumpy road, like maybe within five years, six years, and the credibility of paying the principal back of their bonds Like sometimes it's increased, sometimes it's reduced.
Parul GargGUEST
And in that situation, the company usually becomes like stress and sometimes distress.
Parul GargGUEST
In technical terms, any credit is trading 500 bps above the treasury, we start calling that distress.
Parul GargGUEST
And any credit which is trading above 1000 bps, over the treasury we call distress.
14 MINS LATER
Laura BakerHOST
When you have that many different dynamics to balance, how do you think about position sizing and risk management?