GCA sees rising yields and more defaults driving long/short credit

• Higher yields and increase in defaults boost the outlook
• This article is for AFI Pro and Executive members
• Related: Brigade Capital focused on loan space opportunity, private equity impact

Higher yields and an increase in defaults have significantly boosted the outlook for long/short credit, according to Global Credit Advisors and Brigade Capital Management.

“With higher rates overall it has been [easier] to get yield in a portfolio on the long side from good-quality companies,” said Brian Hessell, co-founder of GCA, a US corporates specialist with $1.1bn under management.