Europe’s Distress Creates a Growing Special-Situations Opportunity

RBC BlueBay argues that Europe’s middle-market is becoming an increasingly fertile hunting ground as refinancing pressure, weak growth and limited financing options create opportunities for special-situations investors. 

• European mid-market companies often have $100–500 million of debt and face tighter bank lending alongside limited capital-market access. 
• The team's opportunity watchlist has reached a record high, at three times the average size and spanning a broad range of industries. 
• Historical analysis suggests adding event-driven credit can improve portfolio risk-adjusted returns through attractive absolute returns and low correlation with traditional assets. 

Read the full analysis for how market stress can create opportunities in European distressed and event-driven credit.