Junk Bond Guru Fridson Sees Rising Distress Ahead: Credit Weekly

The strong US economy has left distressed debt investors starved of opportunity but that may be about to change, according to veteran high-yield analyst Marty Fridson.

The latest Federal Reserve survey of senior loan officers showed banks raising standards by the most in three years when they’re lending to medium-sized and larger companies. That’ll put the squeeze on borrowers already grappling with higher funding costs and global volatility from escalating trade wars.

“At the margin, a tightening of credit standards puts more companies in serious risk of default,” said Fridson, a former strategist at Merrill Lynch whose debt ...