Davidson Kempner Sees a $770 Billion Stressed Debt Opportunity

About this episode

The episode discusses the $770 billion stressed debt opportunity as US companies face challenges due to elevated interest rates.

US companies with $770 billion in loans are hitting a wall as interest rates stay elevated, according to Davidson Kempner. “We’re in year three of what’s already the longest default cycle in 20 years,” Suzy Gibbons, the hedge fund’s head of research, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s David Havens in the latest Credit Edge podcast. “About a third of the market is stressed based on fundamental credit data,” she said. They also discuss liability management exercises, software defaults, distressed-debt returns and the broader impact of leveraged-debt stress on markets. See omnystudio.com/listener for privacy information.

People in this episode

Hosts: James Crombie, David Havens

Guest: Suzy Gibbons

Topics covered

• stressed debt
• interest rates
• default cycle
• liability management
• distressed-debt returns
• leveraged-debt stress

Keywords

• stressed debt
• interest rates
• default cycle
• liability management
• distressed debt
• leveraged debt

Mentioned in this episode

Organizations: Davidson Kempner, Bloomberg News, Bloomberg Intelligence

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