Distressed Debt Outlook as Global Growth Slows

The video discusses the current state of distressed debt, highlighting the growth in leveraged loans and high yield bonds since the 2008-2009 crisis. It explores the consolidation among big funds and the opportunities in the middle market as defaults rise. The discussion also touches on the Federal Reserve's role in maintaining economic stability and the potential for restructurings due to unsustainable capital structures in the next 12 to 24 months.

What has happened to leveraged loans and high yield bonds since the 2008-2009 crisis?

• They have remained the same.

• They have tripled.

• They have decreased significantly.

• They have doubled.

What is a key focus for firms dealing with distressed credit?

• Focusing solely on large markets

• Avoiding bankruptcy claims

• Building idiosyncratic portfolios

• Investing in high-risk stocks

Why are firms excited about moving to the middle market?

• It is easier to manage.

• It has higher default rates.

• It is more profitable than large markets.

• There is less competition.

What is the Federal Reserve's stance on economic downturns?

• They are encouraging downturns.

• They are causing downturns.

• They are indifferent to downturns.

• They are trying to prevent downturns.

What factors are expected to lead to future restructurings?

• Geopolitical stability

• Rapid economic growth

• Sustainable capital structures

• Unsustainable capital structures