Hard Times Could Return For Portfolio Companies

  • Economy remains on shaky footing
  • Some high-profile defaults emerge
  • ’Chapter 22’ for Hostess

With a stumbling economy under the threat of a “fiscal cliff,” market watchers toward year-end warned that 2013 could prove difficult for portfolio companies that are already burdened with a heavy load of debt.

In some ways, market conditions have been historically benign since the financial crisis began to ease in mid-2009. Today, the stock market is up, and interest rates remain near historic lows. At the same time, yield-hungry investors are making credit ...

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