Distressed-debt funds eye private credit collapse

Distressed-debt investors are positioning for what they call the greatest opportunity since 2008, as the private credit sector comes under mounting strain from rising rates and the oil-price shock. Funds are raising capital specifically to buy up defaulting private loans at deep discounts, anticipating a wave of corporate distress. The private credit market has ballooned to over $2 trillion in recent years, making any downturn systemically significant.

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