Even advisers who are veterans of the 2008 financial crisis say that the current situation, where healthy businesses have seen their cash flow evaporate overnight, is unprecedented.Economic disruption caused by the novel coronavirus has put a group of investors, lawyers, and bankers back in the spotlight.Distress investing, which looks to take advantage of bankruptcies and other high-risk situations, struggled to find opportunities for years.
Private-equity shops are looking to invest in public equities and ramp up loans to help businesses through the crisis.The coronavirus is slamming global economies and sending company revenues plunging. The sudden, unexpected shock has prompted credit downgrades and sent global markets on a roller-coaster ride.
But the chaos is an opportunity for a group of advisers, traders, and investors who have been waiting years for a big shakeout. And things are heating up. The coronavirus is accelerating work on energy companies and retailers that were already seeing weakness, restructuring. But even advisers who are veterans of the 2008 financial crisis say that the current situation, where healthy businesses have seen their cash flow evaporate overnight, is unprecedented.
On Thursday, retailer Neiman Marcus filed for Chapter 11 bankruptcy, following J. Crew Group Inc, which filed on Monday.