Houlihan Lokey Expects Default Surge in a Crisis Worse Than 2008

One of the world’s top restructuring bankers sees an economic crisis looming that will be worse than the last recession.

“In some ways, it’s much more severe than what we experienced in ’08 and ’09,” Irwin Gold, executive chairman of Houlihan Lokey Inc., said in a Bloomberg Television interview Tuesday. “You saw that in the incredible volatility and revenue destruction we saw, which will lead to cash-flow destruction, liquidity destruction and knock-on effects,” he said, adding that the coronavirus pandemic and shocks in oil prices have “revealed excesses in corporate credit and direct lending.”

WATCH: Houlihan Lokey’s Irwin Gold says he sees an economic crisis looming that will be worse than the last recession.

(Source: Bloomberg)

While U.S. lawmakers ...