Stresses and strains may trigger a distress revival

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Distressed debt has adapted to more benign market conditions but may revert to a ‘pure’ form as pressure on borrowers grows.

Distressed debt isn’t what it used to be. In the wake of the global financial crisis, there was a once-in-a-lifetime chance to invest in rebuilding a global economy that was in tatters. That was a genuine “pure distress” opportunity which made fortunes for some but may have burnt others.