Why Korea's Poba has avoided distressed debt assets

The Covid-19 pandemic has put many companies globally under financial strain, accelerating the growth of the distressed debt asset class. That is drawing interest from some asset owners – but not all of them.  Jang Dong-hun, chief investment officer of Korea’s Public Officials Benefit Association (Poba), said the biggest concern for his W14.3 trillion ($11.6 billion) pension fund over allocating to distressed debts is the risk of losing its principal investment. Jang Dong-h…