Debt brings opportunities to Australia
(23 June 2008 – Australia) With refinancing deadlines appearing, international players have begun to circle those Australian companies that are experience debt issues.
A recent paper by Standard and Poor’s found that of the $130 billion of debt outstanding for rated corporates across Australia and New Zealand, about $24 billion (or 18 percent) of outstanding debt is scheduled to mature over the remainder of this year.
Standard and Poor’s credit analyst Anthony Flintoff said that this sizable refinancing task comes at a time when global credit markets are in their most difficult shape for many years.
This means that, for international companies like hedge funds and investment companies in Asia, there will be opportunities in Australia.
A Singapore-based hedge fund, 3 Degrees Asset Management, has said that it is preparing to scoop up assets in Australia as companies struggle to refinance loans.
Jeffrey Tolk, a principal at the firm said that the fund is also seeking companies that have taken on too much leverage and are at risk of default.
While the likes of Centro, Allco and ABC Learning Centres are big name casualties of the credit crunch, Tolk said that there are smaller firms trading at a substantial discount.
Alternative Investment Management Association (AIMA) chairman Kim Ivey said opportunities are available in an environment where banks are reducing their credit lines.
Standard and Poor’s credit analyst Anthony Flintoff said that this sizable refinancing task comes at a time when global credit markets are in their most difficult shape for many years.
This means that, for international companies like hedge funds and investment companies in Asia, there will be opportunities in Australia.
A Singapore-based hedge fund, 3 Degrees Asset Management, has said that it is preparing to scoop up assets in Australia as companies struggle to refinance loans.
Jeffrey Tolk, a principal at the firm said that the fund is also seeking companies that have taken on too much leverage and are at risk of default.
While the likes of Centro, Allco and ABC Learning Centres are big name casualties of the credit crunch, Tolk said that there are smaller firms trading at a substantial discount.
Alternative Investment Management Association (AIMA) chairman Kim Ivey said opportunities are available in an environment where banks are reducing their credit lines.
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