The rapid recovery of credit markets has caught distressed debt investors by surprise and forced many to reassess their investment plans.
Twelve months ago all the talk was of an unprecedented and historic opportunity in distressed debt. The expectation was that default rates would remain high for an extended period of time due to the depth of the economic recession and the huge amounts of leverage in the system.
That was before central banks flooded the markets with liquidity. The credit rally,
The week on Risk.net, August 4–10Receive this by email