Marc Lasry, CEO of hedge fund Avenue Capital Group, is an expert on private distressed debt. He is one of the most successful and innovative characters in a field which few dare to touch because of the inherent risk involved. He is profiled in Maneet Ahuja’s The Alpha Masters in the fourth chapter which is entitled. Distressed Debt Value Seekers.
At the moment Lasry, like everyone else in the arena, is looking at Europe. He appeared on the CNBC show Squawk Box yesterday to discuss the turmoil on the continent and his outlook on the future for distressed debt there. Europe for Lasry is a combination of massive opportunities, the economies of the EU are drowning in private debt, and low prices brought on by Headline Risk.
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That combination is perfect for Lasry’s investment model. He sees Europe as two distinct regions with countries in the North, like Germany and the United Kingdom, where turnarounds take a much shorter time because of a more highly functioning legal system, and the South, like Italy and Spain, where turnarounds can take as much as double the time.
Funds that are investing in valuable debt at discount prices in Europe are doing some of the most interesting and dangerous work in finance. The reaction of the markets and the real economies to the continent’s stability make it a difficult place for any investor to operate.
The entire interview from CNBC is at this link. Tune in to find out more of Lasry’s opinions on the future of European private debt.