Coming to a Cash-Strapped Company Near You: Creditor-on-Creditor Violence
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 19 2024
0mins
Source: WSJ
Corporate Debt Dynamics: U.S. companies with low-rated bonds are leveraging competition among lenders to negotiate better terms, leading to a rise in what is termed "liability management exercises" by private-equity owners.
Investor Conflict: This situation has resulted in a phenomenon referred to as "creditor-on-creditor violence," highlighting the intense struggles among debt investors in the corporate debt market.
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Analyst Views on IVZ
Wall Street analysts forecast IVZ stock price to rise
11 Analyst Rating
4 Buy
7 Hold
0 Sell
Moderate Buy
Current: 23.310
Low
25.00
Averages
28.68
High
33.50
Current: 23.310
Low
25.00
Averages
28.68
High
33.50
About IVZ
Invesco Ltd. is an independent investment management firm. It serves the retail and institutional markets within the investment management industry in the Americas, Europe, Middle East, and Africa and Asia-Pacific in 120 countries. It offers a range of investment strategies across asset classes, investment styles, and geographies. Its asset classes include equity, fixed income, balanced, alternatives and money market. Its retail assets under management include exchange-traded funds, separately managed accounts, individual savings accounts, investment companies with variable capital, investment trusts, open-end mutual funds, unit investment trusts, and variable insurance funds. Its institutional assets include institutional separate accounts, private funds, open-end mutual funds, and collective trust funds. Its client base includes public and private entities, unions, non-profit organizations, endowments, foundations, financial institutions, and sovereign wealth funds.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Global Asset Management Strength: As of the end of 2025, Invesco manages $2.2 trillion in assets, and with its broad investment capabilities and global scale, the firm is well-positioned to help retail and institutional investors navigate challenges and discover new opportunities for success.
See More
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- Market Returns Impact: Favorable market returns contributed an increase of $9 billion to AUM, although foreign exchange fluctuations reduced AUM by $1.1 billion, yet the overall performance remains positive.
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See More
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- Valuation Warning: The current CAPE ratio stands at 39.2, 54% higher than a decade ago and comparable to the dot-com bubble, indicating that elevated valuations may lead to subdued future returns.
- Investment Strategy Shift: Despite high valuations, investing remains a smart move, particularly as the tech sector's dominance and the influence of artificial intelligence inject new vitality into the market.
- Liquidity Impact: Since the 2009 financial crisis, the M2 money supply of the four major central banks has increased by 159%, supporting asset prices and potentially continuing to drive investment returns in the future.
See More
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- Surge in Gas Prices: Amid the ongoing Middle East conflict, Dutch TTF futures surged 35% on Tuesday to over 60 euros ($69.64) per megawatt-hour, with prices up approximately 76% for the week, posing significant risks to European economic growth.
- Supply Disruption Risks: Qatar halted production due to Iranian drone strikes, leading to an estimated 19% reduction in global LNG supply, which could trigger severe supply squeezes in Europe and Asia, where LNG accounts for about 25% of total gas supply.
- Economic Impact Assessment: Rising energy prices are projected to negatively impact GDP, with Goldman Sachs estimating that a sustained 10% increase in energy prices could reduce GDP by 0.2% in both the UK and euro area, while Norway may see a slight benefit.
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