Oaktree: “witch's brew” of bad omens for markets

The funds will focus on special situations and private credit across Asia, not least distressed assets in India, a source familiar with the matter told FinanceAsia.

Stricter credit requirements, the Sino-US trade war and defaults are creating a bonanza of Chinese non-performing loans for foreign investors.

International interest grows even though the industry cannot match the outsized returns of its early days.

Foreign purchases of Chinese bad loans are likely to ramp up this year, but hot demand has driven up prices and shrunk profitability.

ADM Capital has been seeking debt financing opportunities among distressed Chinese companies for more than 15 years. While that opportunity remains strong, its funding of outbound deals is shrinking.

A crackdown by the Chinese government on corporate bond issuers is expected to enhance the market's appeal for investors.