Oaktree: Anticipated Volume In Distressed Debt Market Disappointing

The world’s largest investor in distressed debt says the anticipated avalanche in European bad loans has not materialized.

John Frank says investment managers tried to take advantage of substantial flow of loans

“A lot of folks, particularly a lot of American investment managers, raised a lot of money to take advantage of what was anticipated to be a very substantial flow of loans from those banks,” John Frank, managing principal of Oaktree Capital Group LLC (NYSE:OAK), was quoted as saying in a Bloomberg Briefs Hedge Fund report.

In 2014 EU lenders are expected to sell 100 billion euros (nearly $131 billion) of loans, which includes non-performing debt, PricewaterhouseCoopers LLP said in the report. While this is up...