North American Distressed Debt: Market Outlook 200806 February 2008

Welcome to the North American Distressed Debt Outlook 2007, which Debtwire is delighted to present in conjunction with Bingham McCutchen LLP, FTI Consulting and Macquarie Securities (USA) Inc.

In this report, you will find an extensive survey of expectations for the year to come from the top hedge fund managers, proprietary trading desks and other asset managers in the industry.

Foreword

Distressed is back. The credit crunch of 2007, spurred on by the subprime mortgage market’s meltdown, hit the leveraged loan and high yield bond markets in full force during the third quarter. Investors quickly headed for the exits, resulting in a massive sell off in the secondary markets and a virtual standstill in the primary markets.

As the dust settled, distressed debt buyers began to search out opportunities, while the supply/demand imbalance that previously favored primary issuers became antiquated. The second half of 2007 taught us that the days of easy credit and wide-spread issuer friendly concessions are finally over. Yet, the massive backlog of committed LBO financing, alongside continued pressure on bids in the secondary market has distressed debt investors licking their chops. Judging by the responses to the Outlook 2008, the year to come will not only feature an increase in the amount of distressed debt product available, but also a rise in the dollars allocated towards chasing it.

Table of Contents

Foreword

Survey Findings

Bingham McCutchen LLP Case Studies: Delta Airlines, Inc. and Refco Inc.

FTI Consulting Feature: The $50bn Question for 2008

Macquarie Securities (USA) Inc. Feature: The Only Certainty is Uncertainty

Bingham McCutchen LLP Contacts

FTI Consulting Contacts

Macquarie Securities (USA) Inc. Contacts

We hope that this report useful, and would particularly welcome any feedback or questions you might have.

Download PDF (5621 kb)

Back to Remark