The cookie crumbles for the credit cycle – Opportunities in distressed debt investing

Event Summary

A prolonged economic expansion, coupled with a low interest rate, has increased the global risk appetite, while underwriting standards have deteriorated. Global debt/GDP has hit a record high of 244% in 2018 (167% in 2007), while the IMF has downgraded global growth forecast for the second time in a row. Geopolitical tension, trade wars, and weakening macroeconomic conditions would remain a drag on the credit profile of issuers.

The macro conditions seem ripe for distressed debt investors to enter and identify opportunities at an early stage. We have learnt from the 2008-09 experience that identifying investable distressed debt opportunities is a long, drawn-out process.

Listen to our experts discuss how you can build a proprietary and scalable distressed debt investing process ahead of the cycle.