Navigating Public Stressed and Distressed Credit Investing in Today's Markets

First of all, Pender Corporate Bond Fund, which is now $1.5 billion in asset and debt management, We usually divide that fund into three buckets.

One is I will call a high safety net bucket where the positions are very liquid, the credit risk is very less, and you're basically chipping good yield and there's some potential upside.

Then the second and third buckets we call bread and butter, and especially the third bucket is special opportunity.

So what this buckets means in the credit wise that you are taking bit of credit risk, but your yield or the return potential is compensating that risk.

And in these two buckets, we have a lot of stress and distress credits.

So over the time, these credits have been the major source of alpha for whole Penta Corporate Bond Fund.

And in 2023, we decided that given we are we have so much experience and we have done this again and again, why don't we take these stress and distress credit and form a fund? And that's how Penta Credit Opportunity Fund came up.

So if you see, it is the same process, same deployment strategy, same team, it's just the fund name has changed.

And this fund is specifically focusing on stress and distress credit, whereas we are not taking any investment grade or low yielding bond because here this is an alpha generating fund.

So you will see the overlap is very high, but we are taking like one of the best ideas, more concentrated form and deploying in Pender Credit Opportunity Fund.