Junk Bond Guru Sees Rising Distress Ahead as Banks Tighten Lending
- More companies may be at risk of default, analyst says
- Fed’s latest loan officer survey shows tighter standards
Martin Fridson
Photographer: Christopher Goodney/BloombergThe strong US economy has left distressed debt investors starved of opportunity but that may be about to change, according to veteran high-yield analyst Marty Fridson.
The latest Federal Reserve survey of senior loan officers showed banks raising standards by the most in three years when they’re lending to medium-sized and larger companies. That’ll put the squeeze on borrowers already grappling with higher funding costs and global volatility from escalating trade wars.