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distressed & special situations

Despite the crisis, alternative lenders are keen to secure more business including in senior lending and acquisition finance.
The coronavirus crisis is creating unprecedented financial distress across markets and provides the first key test of private credit’s ability to manage a downturn.
Unlike 2008, 'you have a situation where revenues have gone to virtually zero overnight'.
Covid-19 and the fallout from a global economic downturn are set to weigh heavily on LPs’ and GPs’ minds in 2020.
Private debt managers active in mid-market direct lending will not escape a downturn unscathed, but they can also see opportunities in slowing growth.
It is now one of the most popular subsets of the private debt universe, but covid-19 could be about to give this booming sector its toughest test yet.
Temporary protections will aim to curb rising bankruptcies of individuals and businesses that have been hit by coronavirus disruption.
David Rosenberg
The former chief economist at Merrill Lynch has been bearish on the economy for a while. A perfect storm of volatility suggests he’s called it right.
An opportunity may be opening up for distressed debt investors, though they need to tread carefully.
Debt funds could provide a countercyclical source of credit during the crisis, but there are concerns about the impact of cov-lite.

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