News Digest: Distressed debt funds struggle to put capital to work

February 10, 2022

News Digest:

The so-called “dry powder” of distressed debt funds soared 58% during the COVID pandemic, to $95bn in 2021, highlighting the lack of adequate investing opportunities for such vehicles amid ultra-accommodative monetary and fiscal policies, according to data released by Preqin.



With low interest rates and government-backed funding helping troubled companies stay afloat, the size of the U.S. distressed debt market plunged from almost $1 trillion at the peak of the pandemic to nearly $65bn as of January 28, Bloomberg figures show.



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