As Distressed Debt Market Size Decreases Trade is Getting Crowded

Debtwire has released its Distressed Debt report for 2012. The report, which relies on interviews with investors in the distressed field, suggests that the U.S. distressed market shrank in recent times. That leaves specialists in the distressed debt field without many opportunities to invest in.

The most dramatic example of the disappearing distressed debt market contained in the report was the amount of investors calling indicating that field as a core strategy. The number of investors in the field dropped to 15 percent in this report compared to 27 percent in 2012, and 36 percent 2011.

Contradictory evidence showed 62 percent of respondents indicated that they had between 21 and 60 percent of their assets in...