Alternative Realities: The case for distressed debt investing in private credit

Alternative Realities: The case for distressed debt investing in private credit

July 16, 2026 · 25 min

About this episode

The episode discusses the growing interest in distressed and special situations credit strategies within the private credit market.

Many investors, particularly those new to the asset class, equate private credit with direct lending. However, private credit encompasses a much broader space than just direct lending. This year, amid concerns over software exposure and rising credit stress in direct lending, we have seen increased interest in other strategies. In particular, distressed and special situations credit strategies, a large and established segment of the market, are gaining popularity. On today’s episode, Aaron Mulvihill is joined by Brad Demong, Co-Chief Investment Officer of the Global Special Situations Group at J.P. Morgan Asset Management. They discuss why interest in distressed and special situations credit strategies has grown, how the private credit market has repriced following dislocations earlier this year and how the current private equity landscape is creating opportunities for distressed and special situations investors. Resources: For more resources on Alternatives, visit our Guide to Alternatives and Principles of Alternatives Investing Listen to the audio version of the Alternative Realities podcast: Apple Podcasts | Spotify

People in this episode

Host: Aaron Mulvihill

Guest: Brad Demong

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Organizations: J.P. Morgan Asset Management

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