In recent years, the economic downturn has resulted in a rise in bond defaults in China's domestic market. As rigid redemption structures gradually break down, it is expected that distressed and defaulted bonds will become more prevalent in the future. Similar to non-performing assets, distressed bonds can be purchased at discounted prices, making the "distressed debt strategy" an attractive option for investors.
At our firm, we conduct a thorough evaluation of the bond market and corporate situations, carefully selecting distressed bonds and analyzing the recovery potential of distressed companies. We use appropriate mathematical methods to assess the fundamental profitability of these companies and gather timely information on events such as restructuring, liquidation, bankruptcy, and other special situations.
Our investment strategy focuses on diversification, both in the companies and industries involved in the bonds we invest in. This approach aims to mitigate risks associated with any single company or industry, providing a balanced portfolio that can generate strong returns over the long term. By implementing this strategy, we aim to deliver consistent, attractive returns to our investors while effectively managing risks.