CFA Society New York - Distressed Credit 2020: Finding Gain in Turmoil and Pain

A CFA Society New York Event

Investors are facing off in the midst of the longest bull market in history. Accommodative monetary policy and an unprecedented period of easy money has led to companies taking on record levels of debt. Times like these leave distressed credit investors eager for what is to come.

As the economic cycle progresses, the next recession draws inevitably closer. The next downturn in the credit cycle will open the door for distressed investors to do what they do best, find opportunity in that trouble.

The fortunes for distressed credit and restructuring funds are generally counter-cyclical to the broader economy. Onset of economic weakness or some other igniter creates increased investment opportunities.

Adverse conditions can create a favorable set of opportunities for distressed investors, with bargain prices for attractive assets after a market dislocation.