Investors looking to make a buck on corporate distress can only hope the post-pandemic world is more accommodating. Credit markets may not be so friendly if the projections underlying that borrowing prove too rosy once post-Covid results come out, according to Phil Brendel of Bloomberg Intelligence. “We’re at credit bubble levels of distressed debt. So credit markets are vulnerable to a significant correction." The pile of distressed debt outstanding, which totaled almost $1 trillion at the height of the pandemic, has sunk to about $60 billion, data compiled by Bloomberg show.

Source: Mint July 06, 2021 14:26 UTC