Distressed Debt

Looming maturity wall gives rise to new ‘blend and extend’ strategy 

Blend and extend is the latest iteration of the 'extend and pretend' strategy frequently seen in the wake of the Global Financial Crisis.

A useful tool, or hidden default? Take your PIK

Seen by some as a sign of trouble but by others as a practical way of helping firms through a rate-rise environment, payment in kind has returned to centre stage.

Balbec secures $465m for sixth fund

The firm has swiftly begun raising its latest vehicle after closing its fifth fund on $1.5bn last year.

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 Financial support offered by governments during the covid pandemic is being withdrawn, inflationary pressures are set to take their toll on company balance sheets, and many firms are struggling with staff shortages.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