Distressed Debt

Distressed debt: The default disconnect

For the first time, there are signs that distressed debt levels may be disconnected from default activity – but what does this mean for investors?

Blue Light Capital launches credit division to target mid-market lending gaps

The firm hired Needham Point Capital co-founders Jeremy Burton and Tristine Lim to lead Blue Light Credit.

MidOcean Partners raises $765m for opportunistic credit fund

Fund targets off-the-run, mid-sized direct lending, stressed and distressed investments in third vintage.

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 Financial support offered by governments during the covid pandemic is being withdrawn, inflationary pressures are set to take their toll on company balance sheets, and many firms are struggling with staff shortages.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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