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Debt Restructuring: Recent trends, insights and market dynamics

Making Sense

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Trends in Debt Restructuring

This chapter analyzes the recent activity in leveraged loans and high yield bonds, noting a significant $2.8 trillion outstanding and a 2024 default rate of 3.1%. It discusses the shift towards out-of-court resolutions in debt restructuring and the evolving role of banks amid rising interest rates and easing loan covenants.

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