Posted By Default

"Sankaty Advisors, Bain Capital’s debt-investment arm, is seeking as much as $3.5 billion for a global credit fund as it positions itself for the next wave of company defaults. The Boston firm sees several sectors undergoing a downturn, including energy, shipping, media, metals, and mining, according to a letter sent to investors. Sankaty joins Oaktree Capital Group, Fortress Investment Group, Apollo Global Management, and others after years of low defaults and triggered record borrowing. Companies have sold more than $3.6 trillion of junk-rated loans and bonds in the past three years, according to Bloomberg data. “It has been six years since the last default cycle, and default cycles typically follow peaks in new issuance by 12 to 24 months,” Sankaty’s letter say."