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Featured Event
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$100 off for CRC Subscribers!
Early Bird Ends April 30
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CRC Subscribers Receive An Additional $100 off by emailinginfo@creditorcoalition.org
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Exclusive Content
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Sayyy what???
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Our take:
While we have great respect for Judge Kaplan as a jurist, the judicial role is to apply the law through an adversarial process—not to facilitate outcomes through back-channel dealmaking. Blurring that line raises serious concerns about conflicts of interest and risks undermining confidence in the integrity of the judicial system and the rule of law.
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Exclusive Content
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KKR holds future deals hostage...
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Our Take:
The Sponsor-in-Possession flexes its muscles again - threatening to shut lenders out of primary opportunities if they organize with advisors. The result: investors stay fragmented , even as yields continue to widen.
How legal is this? We'll have to check with... our advisors. 🙂
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Swiss Cheese Credit Agreements
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Our take
1/3 of all sponsor-backed loans allow a majority of lenders to amend the pro rata provision to allow for creditor on creditor violence?!?!? Avoid them at all costs!
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Practice Pointers:
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market reacts to off-balance sheet frauds...
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What We're Listening To
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Professor Mark Roe on LMEs....
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What We're Reading:
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LME: Let Me Erase (Value)
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structurally compromised?
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Featured Content
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JP Morgan's latest tally of stressed and distressed credit in U.S. markets exceeds $200B across High Yield and Broadly Syndicated Loans. That figure does not include private credit, which I expect to be just as large as HY and BSL combined. When you add Direct Lending to the equation, we are looking at ~$500B+ requiring some form of capital solution in the years ahead.
Opportunistic Credit is the flip side of the primary market for HY, BSL, and Direct Lending. When waters are calm, spreads are tight, and new issues flow freely; in this case, there is typically less activity in Opportunistic Credit.
That calm is ending.
The Morningstar LSTA Leveraged Loan Index has fallen from 98.0 to 94.5 as the distressed ratio of BSL is 8% and rising. Approximately 12% of private credit borrowers are now generating negative cash flow, with 25% operating with interest coverage below 1.0x. These are not hypothetical stress scenarios; this is the current fundamental backdrop companies must contend with. This statistic rises to ~33% when using actual EBITDA, rather than pro-forma adjusted EBITDA which on average has been adjusted higher by 20%.
Capital Solutions will be needed for growth and for turnaround situations across the credit landscape. With the exception of the energy sector, which is performing exceptionally well for obvious reasons, all other 20 industry sectors have issues brewing as JP Morgan shows below.
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Source: JPMorgan
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To follow Bruce's thoughts on the markets, investing and more, follow
@bruce_markets
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In the News
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Oaktrees take on private credit
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Data Download
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Rx pros be like....
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Bankruptcy and Restructuring Primer for the C-Suite and the Board
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April 22, 2026
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Inside Credit Investors' Use of AI
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April 23, 2026
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EMTA Forum: 2026 EM Corporate Bond Outlook in Boston
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April 23, 2026
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ABI: Structure and Implications of Liability-Management Exercises
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April 30, 2026
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ABI: New York City Bankruptcy Conference
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May 20-21, 2026
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The Data Download
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Bringing Transparency to the Bankruptcy Process
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Our Take:
The Daily Cost of BK Legal fees Are Increasing.
Are we shocked? No.
We took a deep dive to see what is driving up the daily cost of restructurings and the culprit: Increasing Legal Hourly Rates. We analyzed final fee apps for top debtor law firms from 2018 to 2024 and found average hourly legal fees have increased by over 65% since 2018. Maybe a little bit of sunlight is the right disinfectant to help remedy the problem....
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