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.

Takeaway:

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.

End Notes

Source: https://www.bloomberg.com/news/articles/2022-02-02/distressed-debt-investors-send-out-their-own-distress-signal