Distressed debt investors should not fret about the lack of attractive investing ideas. In the next five years (2020-2025), there is $600 billion dollars in debt maturities coming due, $150 billion of which is Ca1 or below. Many of these issues are trading below par and will not be able to refinance. Large companies should be okay while mid- caps and smaller companies will lack access to easy capital. Many of these high yield securities will become "radioactive" for investors. Higher interest rates, inflation and slow growth will bring many of these companies to the bone yard.
Research on distressed debt is provided by Performance Plus Advisors, Inc.
Stephen P. Vlahos
Performance Plus Advisors, Inc