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Soraya.vtt

{{00:00:07}}
Let me just start by
saying CQS predates me.

{{00:00:10}}
So we started in credit some 20 years ago.

{{00:00:13}}
And the good news is we're going
strong in credit still 20 years on.

{{00:00:17}}
So I think that's testament
to being real specialists in

{{00:00:20}}
liquid to semi liquid credit.

{{00:00:22}}
Our portfolios are global.

{{00:00:23}}
So what we do is really try and identify
where the best opportunity set is in

{{00:00:29}}
different asset classes of credit.

{{00:00:31}}
And also on a relative
basis geographically.

{{00:00:35}}
And to your point, we started out being
a hedge fund, so really just dependent

{{00:00:39}}
on one founding individual, where we
lived and died by the performance sword.

{{00:00:46}}
When I joined some 13 years ago, the
first thing that I really identified

{{00:00:49}}
was the evolution of where credit was
going, and what clients actually needed.

{{00:00:55}}
Everything that we do is
driven by client demand.

{{00:00:59}}
And 10, some 10 years ago, the search
for yield was definitely there.

{{00:01:04}}
Rates were at 0%, and for pension funds
and institutional clients to introduce

{{00:01:09}}
any type of return into their portfolio,
credit was definitely, on the map.

{{00:01:17}}
And so really you just take a step back
and you think, what do we do really, well?

{{00:01:20}}
Let's do more of that.

{{00:01:22}}
Let's do it in an
organized, non siloed way.

{{00:01:26}}
Through teams, so people,
product, and process.

{{00:01:32}}
And so if you fast forward some 10
years on now, what today is a platform

{{00:01:37}}
where we have 120 people at CQS that
specialize in credit, that really

{{00:01:43}}
lean on that 20 year DNA of knowing
how to underwrite credit, good credit

{{00:01:48}}
companies, be non benchmark hugging
really access the best asset class, the

{{00:01:55}}
best credit in the best geography, and
deliver a return profile to clients.

{{00:02:02}}
The way that you do it is by taking
what you do well, which is being real

{{00:02:07}}
specialists in areas like structured
credit, loans, CLOs, regulatory capital

{{00:02:13}}
is a big offering of ours, we've been
in the market for some 11 years now,

{{00:02:18}}
taking those type of strategies and
offering them to clients on a stand

{{00:02:22}}
alone basis, but also in a blended
multi asset credit platform as well.

{{00:02:34}}
Look, I grew up on the client side of
the industry, so for me, I think the

{{00:02:39}}
first principle is none of us would
exist if it weren't for the client.

{{00:02:44}}
I think first of all, you
need to put that hat on.

{{00:02:47}}
The way you stop having a business
is by stop having clients.

{{00:02:52}}
So for me, really being able to
understand what the client wants, to

{{00:02:57}}
be very transparent with the client.

{{00:02:59}}
To make sure that you are being
consistent with the client and

{{00:03:03}}
accepting that you're not great at
everything but really delivering

{{00:03:06}}
what you are great at to the client.

{{00:03:08}}
And I think that strategy is the
most important when things go wrong.

{{00:03:13}}
So everybody has times where they do well
and times when they don't do as well.

{{00:03:18}}
I think being very, communicative with
the client is the most important thing.

{{00:03:23}}
So having specialists that
understand their product.

{{00:03:27}}
Having an open dialogue.

{{00:03:29}}
with the client that's
constantly evolving, I think

{{00:03:31}}
is a really strong strategy.

{{00:03:33}}
Basically listening and communicating
constantly with your client is one of

{{00:03:36}}
the most important things you can do.

{{00:03:44}}
So I think we spoke earlier about
how we've been up to about two

{{00:03:48}}
years ago in a 10 year environment
of zero rates, which really means

{{00:03:53}}
that all boats floated at the time.

{{00:03:55}}
Everybody made money, right?

{{00:03:57}}
In credit.

{{00:03:59}}
Today interest rates have moved.

{{00:04:02}}
And you can debate where they will end up.

{{00:04:05}}
But the reality is, I think
there's a consensus they're not

{{00:04:07}}
ending up back down at zero.

{{00:04:09}}
And investing in credit, especially
floating rate credit, where you pick

{{00:04:14}}
up the local interest rate of its local
market, investing in credit today is back.

{{00:04:19}}
Income is back.

{{00:04:21}}
And it's back through liquid credit,
semi liquid credit, and private credit.

{{00:04:25}}
And the beauty of that is that it
gives clients the opportunity to

{{00:04:28}}
actually blend their return profile.

{{00:04:31}}
their return and liquidity
and risk profile.

{{00:04:33}}
So to me, I think the next decade
is going to be about the clients

{{00:04:39}}
understanding what their risk and return
and liquidity profile looks like and

{{00:04:43}}
being able to have the choice to do that.

{{00:04:45}}
I also think that basically, being
able to be selective in credit

{{00:04:51}}
is going to be very important.

{{00:04:54}}
So whilst there is income in credit
and good value income in credit today.

{{00:04:59}}
We are also an environment
where defaults are picking up.

{{00:05:02}}
So you've got predicted
defaults of between 4 5 percent

{{00:05:06}}
in liquid credit markets.

{{00:05:09}}
That means that you have to be highly
selective, making sure that you're

{{00:05:12}}
avoiding the wrong ones and you're
really going after the right ones.

{{00:05:16}}
To do that, you need to be a specialist.

{{00:05:19}}
So I think the biggest trend as we've been
acquired recently by Manulife, which is a

{{00:05:25}}
very large insurance company that owns a
very large 900 million, asset management

{{00:05:32}}
arm called Manulife Investment Management,
and we've been acquired by them.

{{00:05:35}}
And the beauty of that is that
they've kept us as a boutique

{{00:05:39}}
specialist in alternative credit,
but they've given us the breadth and

{{00:05:45}}
the depth and the history of a large
platform with know how, stability.

{{00:05:50}}
Which I think is a trend that's
continuing and you can see that

{{00:05:53}}
through the M& A market and we'll see
a lot more of that, I think, in the

{{00:05:57}}
next four to five, ten years to come.

Let me just start by
saying CQS predates me.

So we started in credit some 20 years ago.

And the good news is we're going
strong in credit still 20 years on.

So I think that's testament
to being real specialists in

So what we do is really try and identify
where the best opportunity set is in

And also on a relative
basis geographically.

And to your point, we started out being
a hedge fund, so really just dependent

on one founding individual, where we
lived and died by the performance sword.

When I joined some 13 years ago, the
first thing that I really identified

was the evolution of where credit was
going, and what clients actually needed.

Everything that we do is
driven by client demand.

And 10, some 10 years ago, the search
for yield was definitely there.

Rates were at 0%, and for pension funds
and institutional clients to introduce

any type of return into their portfolio,
credit was definitely, on the map.

And so really you just take a step back
and you think, what do we do really, well?

Let's do it in an
organized, non siloed way.

Through teams, so people,
product, and process.

And so if you fast forward some 10
years on now, what today is a platform

where we have 120 people at CQS that
specialize in credit, that really

lean on that 20 year DNA of knowing
how to underwrite credit, good credit

companies, be non benchmark hugging
really access the best asset class, the

best credit in the best geography, and
deliver a return profile to clients.

The way that you do it is by taking
what you do well, which is being real

specialists in areas like structured
credit, loans, CLOs, regulatory capital

is a big offering of ours, we've been
in the market for some 11 years now,

taking those type of strategies and
offering them to clients on a stand

alone basis, but also in a blended
multi asset credit platform as well.

Look, I grew up on the client side of
the industry, so for me, I think the

first principle is none of us would
exist if it weren't for the client.

I think first of all, you
need to put that hat on.

The way you stop having a business
is by stop having clients.

So for me, really being able to
understand what the client wants, to

To make sure that you are being
consistent with the client and

accepting that you're not great at
everything but really delivering

And I think that strategy is the
most important when things go wrong.

So everybody has times where they do well
and times when they don't do as well.

I think being very, communicative with
the client is the most important thing.

So having specialists that
understand their product.

with the client that's
constantly evolving, I think

Basically listening and communicating
constantly with your client is one of

So I think we spoke earlier about
how we've been up to about two

years ago in a 10 year environment
of zero rates, which really means

And you can debate where they will end up.

But the reality is, I think
there's a consensus they're not

And investing in credit, especially
floating rate credit, where you pick

up the local interest rate of its local
market, investing in credit today is back.

And it's back through liquid credit,
semi liquid credit, and private credit.

And the beauty of that is that it
gives clients the opportunity to

their return and liquidity
and risk profile.

So to me, I think the next decade
is going to be about the clients

understanding what their risk and return
and liquidity profile looks like and

being able to have the choice to do that.

I also think that basically, being
able to be selective in credit

So whilst there is income in credit
and good value income in credit today.

We are also an environment
where defaults are picking up.

So you've got predicted
defaults of between 4 5 percent

That means that you have to be highly
selective, making sure that you're

avoiding the wrong ones and you're
really going after the right ones.

So I think the biggest trend as we've been
acquired recently by Manulife, which is a

very large insurance company that owns a
very large 900 million, asset management

arm called Manulife Investment Management,
and we've been acquired by them.

And the beauty of that is that
they've kept us as a boutique

specialist in alternative credit,
but they've given us the breadth and

the depth and the history of a large
platform with know how, stability.

Which I think is a trend that's
continuing and you can see that

through the M& A market and we'll see
a lot more of that, I think, in the

Soraya Chabarek, CEO of Manulife, shares her journey in transforming CQS into a global leader in liquid and semi-liquid credit over the past two decades at SuperReturn North America. Learn how the firm's client-first approach, specialization in structured credit, and commitment to transparency have shaped its success. Soraya highlights the importance of selectivity in today’s evolving credit landscape, where defaults are rising but opportunities abound. She also discusses the impact of Manulife's acquisition, blending boutique expertise with the resources of a $900 billion asset management powerhouse.
