Brief Spring upturn for distressed securities is not expected to last

Those expecting continued default rates at the high levels experienced recently might be disappointed as distressed managers forecast a slowdown.

April and May were, in some cases, record months for funds trading distressed securities, and according to James Hedges of LJH Global Investors, this coincided with a brief upturn in the general economy.

'April looked good for the whole industry,' he says. 'There was a clear increase in consumer confidence, but a continued downward trend in manufacturi