Corporate restructuring needs could surpass 2008 levels amid a surge in junk debt, BlackRock says

The scale of corporate restructuring could surpass financial-crisis highs on a swelling pile of junk-rated debt,BlackRock said Monday.
Sub-investment grade debt outstanding ballooned to $US5.3 trillion since 2007. The coronavirus pandemic only exacerbated the growth, as the Federal Reserves bond purchases revived the credit market and companies rushed to raise cash.
Yet the pandemic also curbed companies ability to repay debts as lockdowns slammed revenue streams, the strategists said.
Those hoping to capitalise on a wave of restructurings should look to distressed-debt specialists and private credit markets, the team added.
Visit the Business Insider homepage for more stories.

The scale of corporate restructuring could exceed 2008s…

Corporate restructuring needs could surpass 2008 levels amid a surge in junk debt, BlackRock says | Markets – Business Insider