The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookiesbefore using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Distressed debt II: The Americans pounce on Europe

Following on from yesterday's news that hedge funds now dominate the market for US distressed debt, making the market far more aggressive and volatile for companies in trouble, a report has revealed that the Americans are planning to target Europe this year.

A survey published by data provider Debtwire, law firm Cadwalader Wickersham & Taft and bank Houlihan Lokey Howard & Zukin says that the paucity of US distressed debt and opportunities here will make Europe the hotspot for distressed debt trading in 2005.

Bank debt, mezzanine finance and non-performing loan portfolios held by German banks are seen as the three most promising areas. In Germany, the impact of Basel II and increased competition among German banks has led to a big sell-off of non-performing loans. Three-quarters of respondents to the survey named Germany as the ?land of opportunity? this year.

Italy is also popular for distressed debt, despite the problems surrounding the restructuring of troubled Italian companies Parmalat and food producer Cirio.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?