Corporate bond defaults to fall in 2003

Established distressed strategy investors have not been so excited about the current investment environment since the early 1990s and before that 1933. In each of those prior periods, a recession coupled with an abundant supply of distressed investment opportunities created an exceptional investment environment for distressed investors. Default rates on bonds (a good measure for the supply of opportunities in this asset class), was 12.8% in 2002, a record year. The last time default rates were above 10% was 1991 (10.3%). At present, there are close to $1tr in face value of defaulted US b...