FTI Consulting

Recent Posts

Default Surge on Hold as Leveraged Credit Markets Refuse to Buckle

by FTI Consulting on Jul 29, 2018 9:00:00 AM

15-1

The last default cycle happened nearly a decade ago, and restructuring professionals are eagerly awaiting the next one. As a decade between default cycles is a significant amount of time, chatter that “we are due” is increasing. However, default cycles do not spontaneously occur and the ground conditions that preceded prior ones are not yet in place. Distressed debt levels are low and leveraged credit markets remain supportive of high risk borrowers.