Download PDF Introduction “You show me a hero, and I’ll write you a tragedy.” – The Big Short (2015) In a previously discussed article titled “When Creditors Collide: The Tug of War for Distressed Assets,” we examined the history, mechanics, and initial wave of creditor-on-creditor violence. LMEs (liability management exercises), Read more…
Download PDF Introduction When underwriting any debt investment, two fundamental questions must be asked: will the borrower be able to repay us? And if not, can we enforce claims over the debtor’s assets? In this article we will be discussing the increased aggression of claim enforcement- not on the company- Read more…
In this article, we introduce distressed debt securities. Then, we investigate what are the problems of valuing a company in financial distress and how we can address those problems. Finally, we present some investment strategies that can be applied when a company is financially distressed. Overview Distressed companies are companies Read more…