facebook

ICICI Pru Corporate Credit Opportunities AIF

IME AIF Rating: 4-star | Open for subscription: Yes | AIF Category: High Yield Debt
  • Lending in segments with high demand & low supply: Most banks & NBFC’s have become very cautious on lending in project finance, LAS & structured credit, leaving a large funding gap. This provides the ability to earn high yields & be more selective on deals that are invested in, which can lead to superior returns provided credit risk can be managed
  • AMC & Investment team: With a large debt MF portfolio, ICICI Pru MF has strong capabilities in corporate bonds. The investment team for this specific fund also comes with a strong pedigree in credit investing.
  • Risky lending segments: ICICI Pru Corporate Credit Opportunities AIF focuses on Corporate facilities (capex/growth funding) & LAS/structured credit segments. These have historically been the key areas of concerns for Indian lenders, with corporate facing banks having large NPA issues in project financing and the likes of Yes Bank & certain MF’s taking large hits in LAS/structured credit. Given the past issues faced in these segments, there is a higher potential for credit events in this segment
  • Banks: can be a lot more competitive if interest comes back + better collection mechanism + IBC process
  • Rising focus on manufacturing: PLI, tax cuts, China +1 and import restrictions — India’s focus on manufacturing could/should lead to huge capex. Translates to opportunities in debt as well.
  • Can be considered for investment for higher-risk investors in debt: The positioning of investing in riskier segments, does lead to potentially higher returns, but this does get compensated by clearly higher credit risk.

AMC

AMC Rating

0 of 5 stars

AMC Pedigree

0 of 5 stars

AMC Size

0 of 5 stars

Team Pedigree

0 of 5 stars

Inv Philosophy

0 of 5 stars

Performance

0 of 5 stars