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Moelis Sees Peril for Companies That Gorged on Debt

  • Restructuring expert sees likely recession, debt pain
  • Rising prices, interest rates foretell ‘horrible’ stagflation
RF office work window
Photographer: Thomas Barwick/Stone RF/Getty Images

Amid higher inflation and rising interest rates, companies that binged on debt when it was cheap have a lot of work to do to slim down, according to Bill Derrough, a restructuring expert and global co-head of capital structure advisory at Moelis & Co.

“In some cases it may be a minor surgery -- a little nip, tuck here and there -- and in others, limb amputations,” he said in an episode of Bloomberg Intelligence’s FICC Focus State of Distressed podcast.