David Einhorn’s Greenlight Capital has established a negative bet on U.S. corporate credit.
The value-oriented, mostly long-short equity manager said it is shorting both investment grade and high-yield debt, according to the firm’s second-quarter letter, obtained by Institutional Investor.
“Over the last few years, corporate debt has expanded dramatically, while covenant packages and other bond-holder protections have weakened considerably,” the firm explained in the letter.
