One area of potential growth: Wall Street restructuring departments. They’re eyeing expansion to provide advice to companies so burdened by high debt load they need to sell stuff or “restructure” in Chapter 11 bankruptcy.
Sources tell me investment banking firm Morgan Stanley is weighing a big expansion of its restructuring team (Morgan Stanley wouldn’t deny the matter). Other banks are likely to follow because none of this is really rocket science.
The unwinding of the credit cycle to tighter lending standards is always pretty tough on corporate balance sheets, but it could be particularly brutal this time given the monetary policy experiment — and corporate debt binge — of the past two-plus years, bankers tell me.NYPost Cruel winter ahead for Wall Street as pandemic debts come due