“We’re in the seventh year of a six-year cycle,” is a view you often hear expressed by private debt professionals. The point being made is that it normally takes around six years for a benign credit environment to start turning bad (or vice versa). Taking historical precedent as the cue, it should be about time for distressed investors to be rubbing their hands together in anticipation of the opportunity.
Chart analysis: Distressed debt fails to ignite
Low interest rates and economic resilience are among the factors dissuading investors from committing to funds targeting the strategy.
