Distressed Debt Investors Look for Trouble

In a world of low interest rates with little sign of a recession in sight, the savviest investors in distressed debt say there are always opportunities if you can stomach what sends others running.

• “You’ll find people that are scared of a lot of different things,” said Marc Lasry, co-founder and CEO of Avenue Capital Group. “We’ll do things that are weird.” For example, Avenue has been buying property tax liens and other idiosyncratic investments, he said, speaking at the American Bankruptcy Institute’s New York conference May 22.
• Avenue has invested “a couple billion” in energy because it sees significant ...