Alternative data can provide hedge funds and other investors with actionable insights into the corporate bond market. This is especially true in the distressed debt sector, where conventional data is often lacking. By exploiting new data sources and techniques, investors in this space can identify elusive trading signals and opportunities.

In 2023, distressed debt indices reported net positive returns to end the year. Part of the success of this investment strategy is being driven by the current environment of heightened interest rates. Going into 2024, distressed debt investors may be keen on tracking specific sectors, including commercial real estate and hospitality, as both reportedly face higher levels of leverage and lower revenue.

For investors looking to identify distressed debt opportunities within the corporate bond market, this report highlights sources of alternative data that can be used to:

• Evaluate the health of bond issuers
• Traditional sources of company financials
• Alternative sources of company financials
• Predict corporate default
• Track corporate bond prices for distressed assets