CEO Ellington fears corporate liquidity crisis optimistic "fallen angel"

Michael Vranos, chief executive of Ellington Management Group, said on Wednesday that borrowers could face a liquidity crisis if lending agencies insist on tightening lending conditions as interest rates rise.

Vranos pointed out at the Reuters Global Investment Outlook 2018 Summit that he has instead been looking for bad loans that meet their discount requirements and the investment value of a "fallen angel" loan that bottomed out. He rules over $ 6.5 billion in assets.

"I think the next crisis in the market will be a liquidity crisis, and for its part, I do not think it will necessarily be a credit crisis," he said.