The area of debt is characterized by a large number of investment funds using different investment strategies. In most cases, each fund has expertise in a particular area of debt that it tries to perfect to create excess return, reduce the number of insolvencies and exhaust the collateral for the debt to the maximum extent possible.
Debt funds mostly invest in non-negotiable debt assets, thereby allowing the investor to be exposed to a broad variety of debt alternatives to which he cannot be exposed through negotiable debt markets.