The Market for Distressed Debt Has Changed

In recent months, we've had occasion to watch how mood swings can alter the investment environment. After a period of very stable prices, even for ifi debt, some securities have gapped down in the last few months. In particular, investors have become highly intolerant of bad corporate news. For the first time since two thousand eight to two thousand nine, the debt of some companies outside of energy and mining has fallen from 90 to 60, and others from 50 to 20. There is no immediate connection, other than for companies doing business there, between the slowdown in china or the price decline in the oil patch.