Like yin and yang, risk and opportunity go hand in hand, and if this article from Reuters is right, investors hoping to capitalize on refinance-driven opportunities in Asia will have plenty of possibilities in 2009.
“The biggest elephant in the drawing room is the refinance trade,” said Robert Appleby, chief investment officer at Hong Kong-based ADM Capital.
Companies like ADM are anticipating billions in distressed asset opportunities in the coming year, and with nearly $500 billion in debt expected to mature on the Asian market, many more opportunities should arise as companies seek to get creative in their restructuring efforts.
Right now investors are looking to ride out the coming global recession, but such economic troubles are actually fostering an environment ripe for specialists in distressed assets. Appleby maintains that the Asian market is ‘the best in a lifetime’ for investing in distressed debt, perhaps better even than during the Asian financial crisis of 1997-1998.
Though warning that investors should still be patient for the right opportunity, Appleby notes that the current selling frenzy is putting a lot of ‘good debt’ out on the market, and turning such debt into profits should be easy for the savvy investor.
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