DISTRESSED DAILY: Fed May Be Taking Away a Different Punch Bowl

There’s a wall of money waiting to invest in distressed debt opportunities, but has Uncle Sam spoiled the party?

• Deutsche Bank AG is out with its latest corporate default predictions during what it calls a potentially “once-in-a-century” environment. But the Federal Reserve’s extensive support of the economy and willingness to buy risky debt may mean there is less to go around than some have thought.
  • “Without intervention, we would probably now be facing a default environment only previously rivalled by the Great Depression,” analysts at Deutsche Bank wrote in a recent note. “Assuming we avoid this, as we think we ...