Narrow Road Capital

Australian Credit Management - Higher Returns · Lower Fees

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Australian Credit Management

Higher Returns · Lower Fees

How We Work

Why high yield & distressed credit?

At Narrow Road Capital we believe the credit markets reward three key variables: perceived risk, perceived complexity and actual illiquidity.

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Our Investment Process

Since the establishment of Narrow Road Capital in 2012, client returns have substantially exceeded benchmarks and the vast majority of our peers.

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Our Track Record

We believe a well selected and diligently managed high yield and distressed credit portfolio will deliver far better risk adjusted returns than traditional investment categories.

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Recent Memos

Credit Snapshots – October 2019

Shenanigans in Leveraged Loans There’s something of an ongoing battle between journalists looking to write a sensational article about US high yield debt and fund managers saying that their investments …
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There’s No Good Case for October’s Rate Cut

The RBA’s decision yesterday to cut the Cash Rate to 0.75% was based on faulty logic and a short term focus. Philip Lowe’s speech in Armidale on September 24th laid …
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Confused man with bag over his head

The Dumb Money is Buying Bank Hybrids

The media sometimes uses the terms “smart money” and “dumb money” to describe institutional and retail investors respectively. The premise is that institutions have full time employees that specialise in …
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Stock Market Trend Down

BB’s are the new BBB’s

The downgrade of Ford Motor Co this week by Moody’s from Baa3 to Ba1 (equivalent to BBB- and BB+ rating monikers for Standard and Poor’s) opens up the question of …
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A guys fist clenched ready to punch

Central Banks are Fighting Economic Fundamentals

After the latest wave of central bank rate reductions my clients and contacts have been consistently asking whether central banks know what they are doing. Given rate cuts over the …
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Bank hybrids

Bank Hybrids are a Screaming Sell

Yield chasing has spilled over into nearly every asset class, with Australian listed bank hybrids no exception. The current average margin of bank bills + 2.40% is close to the …
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