- JPMorgan strategists wrote Tuesday that the deeply distressed tail of the US leveraged loan market has grown to $65 billion, up from $40 billion a year earlier.
- That $65 billion marks the highest level of deeply distressed loans since March 2020, the onset of the pandemic.
- Technology is the single biggest sector under pressure within the distressed loan universe.
Quotes
“the value of loans trading below 60 cents on the dollar, or deeply distressed levels, rose to $65 billion from $40 billion a year ago, to the highest since March 2020”