KKR (KKR) Sees Big Profits in China, But Not Through What You Might Think...
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According to the Financial Times (FT) Friday, Kohlberg Kravis Roberts & Co. (NYSE: KKR) is planning an expansion of its $2 billion special situations unit into Hong Kong. The special situations unit aims to profit from "faltering and over-indebted" companies, FT notes.
KKR's Asset Management head Bill Sonneborn said the firm is positioning itself for a period of more dented growth in China. He commented that should massive Asian economies, like China, show even half the growth previously experienced, it would be like the U.S. or Europe entering into a recession.
W.L. Ross Chair Wilbur Ross agrees, and points to the property-company sector. He notes some property-company bonds trade with 20 to 30 percent yields. Though the sector might not blow up, there will be some property companies which will, creating investing opportunities.
FT says data from research firm Preqin has Asia-focused distressed debt funds raising only 6 percent of some $197.3 billion of global capital that went into the asset class over the last 7.5 years.
Hedge fund fans won't see this as a new development; Kynikos Associates founder Jim Chanos recently said he's still short China. He has also emphasized the property sector in the past.
KKR's Asset Management head Bill Sonneborn said the firm is positioning itself for a period of more dented growth in China. He commented that should massive Asian economies, like China, show even half the growth previously experienced, it would be like the U.S. or Europe entering into a recession.
W.L. Ross Chair Wilbur Ross agrees, and points to the property-company sector. He notes some property-company bonds trade with 20 to 30 percent yields. Though the sector might not blow up, there will be some property companies which will, creating investing opportunities.
FT says data from research firm Preqin has Asia-focused distressed debt funds raising only 6 percent of some $197.3 billion of global capital that went into the asset class over the last 7.5 years.
Hedge fund fans won't see this as a new development; Kynikos Associates founder Jim Chanos recently said he's still short China. He has also emphasized the property sector in the past.
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