Distressed is hot spot in event driven as merger arbitrage fails to deliver
Distressed debt may have contracted since 2002 but 2005 could see new opportunities arise
The US continues to be the main market for distressed debt managers, with Europe running a relatively immature second.
There are many more opportunities in the US because of the tried-and-tested Chapter 11 process, according to Derek Stewart, co-founder of Mellon Global Alternative Investments.
"Europe is not one market - each country has its own regulatory process so there are not as many opportunities, but there are not as many players either," he says.
"There is more certainty of the outcome in
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