Astra understands broader market dynamics, track flows and shifts in risk appetite for different investor groups. Different instruments often price risk premium differently and Astra looks to capture this arbitrage for the investors. Astra uses proprietary analysis to understand relative value across asset classes and market scenarios. These investments are shorter term in nature and generally present an attractive IRR.
The main opportunity is a result of bifurcation of credit investors: those driven largely by regulatory considerations and those focused primarily on commercial aspects. Constraints such as liquidity, regulatory or rating requirements may result in supply demand imbalances for certain asset classes. Such dislocations frequently present attractive investment opportunities.