At first glance, 2019 might look like a quiet year fordistressed-debt investors, judging by the small list of troubledbonds coming due. But the light schedule may be obscuring howquickly some issuers will unravel.

As Toys “R” Us demonstrated, weak sales and nervous tradecreditors can bring down a company long before the maturity datesfor loans and bonds. What's more, secured debt isn't as secure asit used to be: Top-heavy capital structures and loose covenantscould leave little for junior creditors to recover if an issuergoes bust.

Even first-lien holders may have to lower their expectationsbecause of loopholes that weaken their claims on collateral,according to Jeanne Manischewitz, co-head of North American creditat York Capital Management.