Guide: Introduction to Distressed Debt Investing

by August 2009

Following the asset valuation meltdown of 2008, numerous well diversified investors are increasing looking at distressed debt.  The reason we are all so interested in distressed debt is because of its returns potential, especially in the current economic environment, where defaults rates are rising equally fast as companies earnings are falling off the cliff.  In this series of “Guide” posts we highlight some of the key issues facing an investor in distressed debt as well as highlighting the numerous incarnations of distressed debt.  Distressed debt is a vague term, covering a multitude of instruments as well as investment styles.  This is by no means an academic piece of work, yet we will try to stick to the facts as much as possible.  In an area where one is paid a premium for lack of transparency and liquidity, it is not an easy job.  This article has been written as one piece however you are welcome to jump to sections that are only of interest to you using the table of contents below (some sections however may not yet be published).  Questions and comments area always welcome.

Leave a Reply

Your email address will not be published. Required fields are marked *