Private Credit

The Distressed Cycle goes round and round…round and round

Overview

An axiom in investing is that credit markets are cyclical. Range bound or “valuation rich” credit markets are followed by spread widening environments (i.e., bear markets) which set up for “opportunity rich” spread tightening regimes (i.e., bull markets)…and the cycle begins again. Corporate distressed follows this “opportunity plentiful/opportunity scarce” paradigm and opportunities were limited throughout much of 2014 and 2015.

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