With Little Distress to Feast On, Here's How Vulture Funds Cope
- Venturing into activism, competing with senior lenders
- Maglan Capital gives up on distressed debt altogether
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What’s a distressed-debt fund to do when the market just isn’t feeling the pain?
With so few companies on the verge of default, investors in the debt are finding other ways to keep busy, like turning to activism or joining banks in the loan market to try to fill the gap left by a shrinking pool of distressed bonds. They have a long way to go before they can spend $74 billion of cash they’re sitting on, according to a report this month by Preqin that cites Blackstone Group LP’s GSO Capital Partners and Oaktree Capital Management as having the biggest stockpiles.