Mike Scott, senior high-yield fund manager at Man Group, believes that many new borrowers come from industries such as healthcare and software, and their corporate assets are relatively light, which means that once a default occurs, investors may only be able to recover a smaller part of their investment:

Friends show their love in times of trouble, not in happiness.

wow, that's pretty wild. it makes sense tho, with industries like healthcare and software, it's not like they have a ton of physical assets to fall back on. mike scott's got a point, but it also feels like the nature of the beast, right? tech and healthcare are booming but also kinda unpredictable. i mean, when was the last time you saw a software company with a warehouse full of, well, anything tangible? it's all bits and bytes. hope investors know what they're getting into. gotta be careful out there, folks!