Latest news with #distressed debt
Bloomberg
4 days ago
- Business
- Bloomberg
Higher Rates Widen Options for Distressed Players, Mudrick Says
Since 2009, when Jason Mudrick set up his fund Mudrick Capital Management, the world of distressed debt investing has seen three major changes: private equity plays a larger role in the economy, low rates have encouraged highly leveraged capital structures across sectors and there's weaker financial documentation. Traditionally, distressed debt opportunities have emerged when the economy wobbles or specific industries face challenges. But the hike in interest rates in 2022 following a boom in leveraged buyouts stressed companies across sectors, as a majority of firms did not correctly hedge rate risk, Mudrick said on Bloomberg Intelligence's Credit Edge podcast.
Bloomberg
14-07-2025
- Business
- Bloomberg
Distressed Debt Loses Luster for Funds Seeking Drama-Free Return
In a world brimming with risk takers, some of the market's biggest gamblers are taking their chips off the table. While receding fears of a global trade war and recession power rallies in everything from the S&P 500 to developing world currencies, it's a different story in the distressed debt space. Special situation funds that usually make their money by backing troubled companies through a turnaround are finding so few places to invest, they're focusing on the debt of healthier companies and are happy to collect the interest.
