Germany’s Weirdest Debt Market May No Longer Be Safe Haven for Lenders (opens original article in a new tab)

Germany's unique Schuldscheine debt market, traditionally seen as safe, is becoming riskier as restructuring becomes more complex and investors grow wary.

• Germany's Schuldscheine debt market faces challenges as restructuring becomes complex due to the need for unanimous creditor agreement.
• Many small and medium-sized companies in Germany rely on Schuldscheine, which are difficult to restructure because of numerous creditors with small debt portions.
• Investors are becoming wary of Schuldscheine as more debt becomes distressed, leading to increased selling and potential risks for lenders.