Wed, May 25, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

2014 may hold 'bright spot’ for North American distressed investors and advisors

Wednesday, January 29, 2014

Komfie Manalo, Opalesque Asia:

A joint report by Debtwire and Bingham McCutchen entitled, North American Distressed Debt Outlook for 2014 said that this year could hold a bright spot for North American distressed investors and advisors.

The study polled 100 U.S.-based hedge fund managers, distressed debt investors and private equity professionals and found that 79% of the respondents said their positions in the high-yield space are generally short. By the same token, 65% of those polled said their positions in the stock market are mostly short.

"The Federal Reserve’s tapering decision from December will eventually lead to tougher lending standards, setting off a wave of defaults for at-risk borrowers unable to garner capital market support. Respondents said they are looking to further capitalize on a pending market correction by keeping significant dry powder on the sidelines," the study said.

The prevailing assumption is that tapering will eventually lead to tougher lending standards, setting off a wave of defaults for at-risk borrowers unable to garner capital market support. To that point, the bearish tone is further solidified in this year’s survey where 21% of respondents see the default rate shooting north of 4% in 2014. That contrasts with their 2013 report, in which everyone fell in a range of 2.1%-4%.

Still, a majority of the survey’s parti......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Ares Capital to buy American Capital in $3.4 billion deal[more]

    From PIOnline.com: Ares Management's business development company Ares Capital Corp. is buying troubled BDC American Capital for $3.43 billion, said a joint news release by the BDCs and another release by Ares Management. Ares Capital Corp.'s assets are expected to grow to about $13.2 billion when t

  2. Launches - Man Group and American Beacon launch new emerging debt fund, Nikko AM launches new Japan equity UCITS fund[more]

    Man Group and American Beacon launch new emerging debt fund American Beacon Advisors, an experienced provider of investment advisory services to institutional and retail markets, launched the American Beacon GLG Total Return Fund today. The Fund became effective May 20. The America

  3. Paul Tudor’s hedge fund trims fee amidst poor performance, keep investors[more]

    Komfie Manalo, Opalesque Asia: Paul Tudor’s $11.6bn hedge fund firm Tudor Investment Corp. announced on Monday it would slash down fees of one of its biggest fund to 2.25% of assets and 25% of profits amidst backlash arising from poor performa

  4. Fund Profile - The hedge fund that couldn't stay open long enough for a big payday[more]

    From Bloomberg.com: Toby Dodson waited six months for his bet against a fragile Portuguese bank to pay off. But before the reckoning, word came down from his hedge fund bosses at Achievement Asset Management in Chicago: get ready to clear out your desk and unwind your trades, we’re shutting down. Th

  5. Opalesque Exclusive: South Africa’s equity-centric hedge funds survive rough April in the black[more]

    Komfie Manalo, Opalesque Asia: Hedge funds serviced by Peregrine Holdings’ unit Peregrine Capital performed fairly well in April. The consecutive gains in March and April meant another step closer towards negating the cumulative losses sustai