Credit Investments

This category consists of investments in companies whose debt we believe is inexpensive relative to its underlying risk. This may include companies experiencing financial distress or whose credit is poor but expected to improve. Investments focus on non-investment grade debt in leveraged or underperforming companies, but also include companies experiencing a liquidity crisis, defaulting on their debt obligations, filing for bankruptcy protection or undergoing other corporate events. Investments typically are made in anticipation of strengthening credit, a recapitalization, reorganization, liquidation or a repayment or refinancing. This category comprises mainly debt securities and instruments such as bonds, bank debt, trade or other claims.