Why it's critical investors understand why opportunities present themselves

"I think that was something I under-appreciated in my early years - the supply and demand of capital, the technicals in the market," he says. 

"What is creating buying activity and what is creating selling activity is just as important as identifying where the opportunity is." 

So, why are opportunities presenting themselves in tradable credit markets today? As Schoenfeld explains, the market currently looks expensive from a spread perspective at the headline level. But take a closer look and there's a lot of dispersion beneath the surface. 

"What I mean by dispersion is it's a winners and losers type of market. You've got companies that are performing well and have been fully embraced in the market. The other end of the spectrum though is where there's volatility in performance or underperformance, we're seeing true weakness in how those credits are being accepted," he says. 

"For a strategy like ours, which looks like a credit picker strategy or a stock picker-like strategy, we can find real opportunity in some of those unloved names or unloved sectors." 

In this Views from the Top interview, Schoenfeld shares how credit markets have shifted over the last two years, explains why spreads have become tight, and why he believes that high-yield bonds can no longer be considered "junk" as they once were. 

He also outlines where he is seeing cracks starting to appear in the market, why this could be an opportunity, and the impact of the private credit market boom on tradable credit investors.