23. Distressed Credits, Bankruptcy, and Distressed Exchanges
What’s in this chapter:
• Examining liquidity in distressed credits
• Why bankruptcy analysis matters, even if a company is not filing bankruptcy
• How to look at rankings, claims, and subordination of claims
• The impact of valuation on bankruptcy and restructuring
• How companies restructure without bankruptcy
Companies sometimes get into financial trouble, and this can lead to default. This is more common for below-investment-grade companies than for investment-grade companies. However, the risk of default is part of the reason why yields are higher on leveraged debt instruments. Many studies show that over the long term, across a diverse portfolio, investors are actually more than ...
Get A Pragmatist’s Guide to Leveraged Finance: Credit Analysis for Bonds and Bank Debt now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
