Now that we've entered a period of economic turbulence, distressed funds are raising record levels of capital this year.
Usually, distressed funds perform well during certain economic conditions, including when monetary conditions have been dramatically eased and when high-yield debt issuance is high, according to a report on crisis-era distressed debt returns by Julian Falcioni at Preqin.
Right now, global interest rates are at all-time lows and corporate issuance is at an all-time high. By August, US high-yield issuances had already matched 2019's number.
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