Distressed Buyers Take Wait-and-See View Amid Euro Crisis Cloud
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Europe’s sovereign-debt crisis and concern about a double-dip recession in the U.S. have distressed-debt investors split on whether to buy the riskiest securities amid an expected rise in defaults, according to a survey of 100 asset managers and traders.
Common shares were rated the most appealing investment opportunity by 37 percent of those surveyed and least attractive by 34 percent, Debtwire’s North American Distressed Debt Market Outlook 2012 showed. Investors are taking a “wait-and-see” approach while reassessing their appetite for risk in the face of economic instability and political and regulatory changes, according to the survey.