How to Tell If a Company Will Default on Its Debt in 2016

Maglan Capital’s David Tawil, Co-founder and Portfolio Manager, suggests a few signs that investors should look out for leading up to 2016. Companies have taken advantage of the current low interest rate environment to refinance their debt, but as interest rates rise and the next maturity wall approaches, they will have to face the music. Investors should watch out for signs of trouble such as credit rating downgrades, debt trading at a discount, and companies experiencing difficulty refinancing at favorable rates with favorable maturities. The Deal’s Lisa Allen has details from Wall Street.

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