On financing options for troubled companies.

• Author: Rees, Matthew
• Position: U.S. Economy - Brief article

"In a world awash in investable funds, even many of the most troubled companies are finding lenders willing to offer them big money. This rescue financing, as it's sometimes called, can give companies time to clean up their balance sheets and avoid a trip to bankruptcy court. U.S. filings for bankruptcy reorganization--a painful experience for employees, creditors, and shareholders alike--are at a ten-year low. Also at historic lows are U.S. corporations' debt defaults."

"Today, the default rate on leveraged loans, which are somewhat akin to high-yield bonds, is running below 1 percent...