JCPNQ - The Absolute Return Partners December 2020 Letter - The Zombies Are Coming

• Absolute Return Partners was founded by Niels Jensen in 2002 and provides bespoke, thematic and innovative investment solutions for institutional investors and family offices.
• A zombie company is simply a company that is neither dead or alive. In other words, it is in so much debt that any cash generated is being used to pay off the interest on the debt.
• Firstly, banks have been surprisingly accommodative. Rather than writing questionable loans off, many of those loans have instead been rolled over.
• Every single debt supercycle is the same in that respect, and it all ties back to the mountain of debt society has been saddled with in the latter stages of all debt supercycles.

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