The current interest rate environment is driving a rise in downgrades, special situations and liability management exercises. But how to know which of the increasing number of stressed and distressed credits are worth adding to — or keeping in — the portfolio?

In this week’s episode of Cloud 9fin, senior reporter Bianca Boorer sits down with Rob Fawn, a portfolio manager in the European leveraged finance team at PGIM Fixed Income, to talk about how this new era is creating new challenges and new opportunities for leveraged finance teams.