Distressed debt market terms: Oldspeak and newspeak

November 27, 2006

As the credit markets grow ever more sophisticated, so the language participants employ grows ever more politically correct. Euromoney translates some of the new terms in vogue in the distressed debt market back into their original forms.

Distressed debt: Clever ways to do the dumbest things

Old term	New term
Distressed	Stressed
Vulture fund	Special situations fund
Re-leveraged	Recapitalized
Equity	HoldCo PIK note
Bank	Institutional investor
Dumb money	CLO
Default risk	Refinancing risk
Creditworthiness	Liquidity
Cram down	Consensual restructuring

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Peter Lee

Editorial director

Peter Lee is editorial director. He joined Euromoney straight from Oxford University in 1985, and has written about banking and capital markets ever since, being appointed editor in 1999. He became editorial director of Euromoney in May 2005.