Distressed Debt

Alternative lenders striking bank partnerships to restructure, acquire maturing loans

As banks seek to address commercial real estate exposure, alternative lenders are stepping in to acquire or help restructure loans.

Oaktree’s Marks: ‘isolated issues’ but no systemic risk

The industry veteran doesn’t believe private credit will bring down the system, but some managers will struggle in a higher-rate environment, he told attendees at PEI Group’s NEXUS 2024 summit.

Refinancing: Is the maturity wall a myth?

New research found just 10-15% of mid-market private credit loans are scheduled to mature in the next two years.

The arsenal of distressed debt violence

Distressed pre-bankruptcy firms are using workarounds that allow some final-reprieve liquidity and offer risk-tolerant lenders opportunities.

About this page

Distressed debt is always one of private debt’s most popular strategies but, in 2022, it’s attracting more attention than usual. Financial support offered by governments during the covid pandemic is being withdrawn, inflationary pressures are set to take their toll on company balance sheets, and many firms are struggling with staff shortages. In this environment, stress is likely to emerge and the low default rate seen in recent years will almost certainly rise. Given these factors, we are doubling down on our coverage of distressed debt and offer our readers the opportunity on this page to explore key stories, news analysis and features.

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