Declines in credit quality provide opportunities

The investment universe for distressed debt funds looks set to grow. According to Standard & Poor's (S&P), this year's number of fallen angels with debt downgraded to sub-investment grade has already surpassed last year's total.

While debt graded below BBB may not qualify for distressed debt, investors typically seeking debt trading at 85p on the pound or less, credit quality declines may provide opportunities for distressed debt funds.

One fund seeking out attractive senior secured distressed deb