European Distressed Debt Market Outlook 2018
14 February 2018
We are pleased to present the 14th edition of the European Distressed Debt Market Outlook, produced in association with Greenhill and Orrick.
Key highlights of the report include:
- 71% of UK-based survey participants do not envision a Brexit-triggered recession over the next two years – however only 33% of non-UK-based respondents share the same view. Opinions are also mixed over the advantages of Brexit. On the UK-based side, a sizeable proportion (61%) envisages benefits such as improved trade deals or less bureaucracy and red tape. Meanwhile, a notable majority (75%) of those located outside the country don’t see such advantages.
- The majority (65%) of distressed investors believe that market conditions will be as challenging in 2018 as in 2017. Only 34% of those surveyed expect to increase their allocation – down from 59% of respondents in last year’s survey.
- Property and construction are expected to provide the best opportunities in 2018 according to 71% of respondents, followed by oil and gas (70%) and transport, including shipping (66%).
- Western Europe remains the most attractive region in terms of distressed opportunities, according to 86% of the respondents, followed by Eastern Europe with 58%.
For the report, Debtwire canvassed the opinions of 80 hedge fund managers, long-only investors and prop desk traders as well as 50 private equity investors in Europe on their expectations for the European distressed debt market in 2017 and beyond.