State of Distressed: Trucano on Distressed Investing’s Evolution

FICC Focus · May 15, 2026 · 1h 56m

“In the past, I think a lot of times [sponsors] just handed the keys over if they were hopelessly insolvent,” industry veteran David Trucano says. “Now [the market has] basically written, through credit agreements, a call to the equity such that they can extract additional value through the capital structure and preserve value for themselves. And as a fiduciary, they’re required to do it.” Bloomberg Intelligence’s Phil Brendel and Noel Hebert sit down with Trucano (formerly of BlackRock, Centerbridge, Goldman Sachs SSG and Houlihan Lokey) to trace the trajectory of the distressed debt and…