(MT Newswires) -- Victor Khosla, founder and chief investment officer of Strategic Value Partners, notes that restructuring opportunities for his firm have quadrupled since January 2022 as a result of the Fed raising interest rates. He sees an economic slowdown in the US and Europe, but does not expect a major crisis. He believes that the property market, affected by years of transactions in a zero interest rate environment, is facing debt maturities that could lead to restructuring.

Strategic Value Partners focuses on direct loans at higher rates of 13-16% and on buying over-indebted companies for restructuring. Direct loans are financing provided directly by investors to companies, without the intermediation of banks, often on tailored terms and at higher interest rates due to the increased risk.

Khosla identifies the European manufacturing industry and the transatlantic property market as sectors with restructuring opportunities. He compares the current environment to that of 2008, when property values fell by 40%, heralding major difficulties for highly leveraged properties.

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