Capital Restructuring | First Quarter 2015

May 2015 – In this edition, we provide our perspectives on the restructuring market during the first quarter of 2015. During the first quarter, the big news for loan defaults was Caesars’ long-anticipated bankruptcy filing. According to Moody’s and S&P, default rates finished the first quarter at 1.9% and 1.7%, respectively. Moody’s expects the default rate to rise to 2.7%, while S&P is projecting a 2.5% default rate in 2015. Sectors to continue to watch for restructuring and distress in 2015 include energy, retail, hospitals and municipalities. Oil & Gas-related loans account for just 4.8% of the S&P Index, yet a significant 39.6% of the Index’s distressed ratio, which tracks the percent of performing Index loans trading at a yield of L+1,000 or higher.

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