After 31 years as a credit investor, Josh Friedman is certain of one thing: Every boom ends in a bust. And there’s a grand finale in the making with the flood of use-it-or-lose it money into SPACs, Bloomberg reports.
“Distress will come back,” Friedman, who oversees $27 billion as co-CEO of Canyon Capital, said in a Bloomberg “Front Row” interview. “It always does, because this type of environment is exactly what creates mistakes.”
To Friedman, nothing epitomizes the breakdown in market discipline like SPACs. Already, 165 SPACs have completed or announced $115 billion in mergers over the past eight months. Another 724 have at least $32 billion to spend, most within two years, or face giving their capital back to shareholders. Read more.
