Chris Sheldon 5.4 2 ideas

The credit market in Asia offers attractive opportunities due to supply-demand imbalances, with high demand for flexible capital from growing businesses and less developed banking sectors, leading to potential mispricings, especially in Southeast Asia and Australia.

KKR believes the credit market is "priced to perfection" but views the software selloff as an overreaction (similar to Energy in 2015). They are buying the dip in high-quality software credit. While Apollo exits, KKR is stepping in to buy distressed/oversold assets at attractive yields (9-10% cash-on-cash). Being the liquidity provider in a dislocated market generates alpha. LONG. Contrarian play on the software credit crunch. Apollo is right and the software business model is fundamentally broken, leading to defaults.