Paradigm Select Assets is an asset fund for investment in distressed debt.The purpose of the fund is to deliver consistently high returns that are uncorrelated to the equity markets.Paradigm purchases under performing debt, assetizes the debt claims into legal judgments, and then liquidates the portfolios on the secondary market.
Our “Recovery Valuation Approach” utilizes proprietary methods, as well as comprehensive financial models based upon $2B of processed debt history, to uncover value niches for investment in the credit markets.
The Opportunity: Paradigm Select Assets has positioned itself for a unique opportunity in the debt buying arena. Two recent factors have combined to dramatically bring down prices of debt portfolios, while at the same time making larger quantities of high quality debt available on the market.
Banks are charging off business and consumer loans earlier than a year ago, and this has resulted in higher availability of fresh debt paper. Also, the tightening of credit terms has forced several larger debt buyers onto the sidelines, bringing down prices of charged off debt to the lowest levels seen in the last 10 years. The reduction of prices by more than 50% from a year ago has created a unique buying opportunity in the market.