Credit Edge: DK Eyes $770 Billion in Troubled Loans
Credit Edge
DK Eyes $770 Billion in Troubled Loans
US companies with $770 billion in loans are hitting a wall as interest rates stay elevated, according to Davidson Kempner. “We’re in year three of what’s already the longest default cycle in 20 years,” Suzy Gibbons, the hedge fund’s head of research, tells Bloomberg News’ James Crombie and Bloomberg Intelligence’s David Havens in the latest Credit Edge podcast. “About a third of the market is stressed based on just fundamental credit data,” said Gibbons. They also discuss liability management exercises, software defaults, distressed debt returns and the broader impact on markets of leveraged debt stress.
Apr 16, 2026