Playing the waiting game

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With copious restructurings to come, managers of distressed funds fret over timing the bottom - and securing the capital they need

With copious restructurings to come, managers of distressed funds fret over timing the bottom - and securing the capital they need

By Carolyn Sargent

With a global recession of historic proportions looming, times have probably never been better for fund managers who trade distressed assets. Global demand for goods and services is collapsing, capital for refinancing has dried up and corporate default rates are still low - which means many more bankruptcies are to come.

Portfolio managers of distressed funds are excited about a boom, especially since such a long cycle of easy credit and economic prosperity made their job so