Download or read book Distressed and Defaulted Debt Securities written by Edward I. Altman and published by . This book was released on 2008 with total page 17 pages. Available in PDF, EPUB and Kindle. Book excerpt: The market for investing in distressed and defaulted debt is continuing to receive a great deal of attention despite the shrinkage in the supply of new securities in 1993-1995 (first half). This is primarily due to the continued excellent return performance of defaulted bonds, the expected growth in the supply of new distressed and defaulted public and private debt paper, and the clearly documented relatively low correlation of returns with the more traditional debt and equity markets. This study reviews some of the important attributes of this unique investment vehicle and updates our analysis of the risk and return performance of the most extreme component of the distressed market defaulted debt.
Download or read book Market Dynamics and Investment Performance of Distressed and Defaulted Debt Securities written by Edward I. Altman and published by . This book was released on 1998 with total page 22 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Distressed Securities written by Edward I. Altman and published by Beard Books. This book was released on 1999 with total page 252 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Market Size and Investment Performance of Defaulted Bonds and Bank Loans written by Edward I. Altman and published by . This book was released on 2008 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: This article assesses and analyzes the size and performance of defaulted bonds and bank loans for the period 1987-2002. Defaulted bonds and bank loans performed somewhat poorly during 2002, reversing the relatively good performance of the preceding year, but more in line with several of the past recent years. This quot;asset classquot; has attracted an increasing amount of new capital, however, as the supply of distressed and defaulted debt securities continued its substantial growth over the past four years. Indeed, the estimated supply of defaulted public and private, distressed and defaulted, debt reached an enormous total of $942 billion by year-end 2002. The outlook for distressed investing was extremely bullish at the start of 2003, given the supply/demand dynamics and the likely regression to the mean of the market to face value ratio.
Download or read book The High Yield Debt Market written by Edward I. Altman and published by Beard Books. This book was released on 1998 with total page 324 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Anatomy of Distressed Debt Markets written by Edward I. Altman and published by . This book was released on 2018 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: We have often observed, e.g. Altman, Hotchkiss (2006), that the market for investing in distressed securities, (the so-called “vulture” markets), had captured the interest of increasing numbers of investors and analysts. These investors, sometimes categorized as “alternative asset” institutions, mainly hedge funds, now can convincingly argue that the market has matured into a genuine asset class, with a reasonably long history of data on return and risk attributes. And, we have been there every step of the way, researching its growth and performance, documenting its dynamics and nurturing the asset class growth with statistics and analytics.Our fascination with distressed firms and their outstanding securities began when the Chairman of an investor enterprise, The Foothill Group (now part of Wells Fargo), came to me (Altman) with an assignment to provide a descriptive and analytical “white” paper on what was generally known as “distressed” debt. This resulted in two monographs, one on Distressed Bonds (Altman, 1990) and a second on Distressed Loans (Altman, 1992). Our first task was to carefully define this market, after getting several interesting, but not sufficient, definitions from practitioners, such as bonds selling for less than 80% of par value. We established essentially two precise categories: (1) bonds or loans whose yield to maturity (later amended to option-adjusted yield) was equal to or greater than 10% (1,000 bps) above the 10-year U.S. government bond rate (later amended to be the U.S. government bonds with comparable duration) and (2) those bonds or loans of firms who have defaulted on their debt obligations and were in their restructuring, usually Chapter 11, phase. The former was categorized “Distressed” and the latter as “Defaulted”. We also included the equity securities of those firms, but did not attempt any documentation on distressed equity at that time.In addition to an increasing number of articles and reports on the Distressed Securities market and to the two aforementioned studies, several books related to the subject have been published (see our Literature Review, later). The purpose of this article is to document the descriptive anatomy of the distressed debt markets size, growth, major strategies, characteristics, and participants, and then to explore its performance attributes, reviewing the relevant 30-year period from 1987-2017.
Download or read book Distressed Debt Analysis written by Stephen G. Moyer and published by J. Ross Publishing. This book was released on 2004-11-15 with total page 518 pages. Available in PDF, EPUB and Kindle. Book excerpt: Providing theoretical and practical insight, this book presents a conceptual, but not overly technical, outline of the financial and bankruptcy law context in which restructurings take place. The author uses numerous real- world examples to demonstrate concepts and critical issues. Readers will understand the chess-like, multi- move strategies necessary to achieve financially advantageous results.
Download or read book The Investment Performance of Defaulted Bonds and Bank Loans 1987 1997 and Market Outlook written by Edward I. Altman and published by . This book was released on 1998 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Market Size and Investment Performance of Defaulted Bonds and Bank Loans written by Edward I. Altman and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The defaulted and distressed, public and private debt markets in the United States swelled to a record $680 billion (face value) at the end of 2001. The market value of this quot;nichequot; segment was approximately $400 billion.Defaulted security investors enjoyed an excellent year on average, as returns in 2001 were 17.5% on bonds, 13.9% on bank loans, and 15.6% combined defaulted public bonds and private bank loans.The Altman-New York University Salomon Center Index of Defaulted Bonds grew to over 200 individual issues and a face value of $56.2 billion; the market value was only $11.8 billion. The market-to-face value ratio of the Bond Index grew somewhat to 0.21 from 0.15 one year ago, but remained at a relatively low figure. The face value of our Defaulted Bank Loan Index also grew to $44.7 billion and the market-to-face value ratio remained quite low at 0.53.The recovery rate on defaulted bonds (price just after default) was very low at 25 cents on the dollar; likewise, the bank loan recovery rate in 2001 was also relatively low at 55 cents on the dollar. With new defaulted bonds rising in 2001 to a record $63.6 billion (default rate of 9.80%) and the default outlook for 2002 high, but lower than for 2001 investment opportunities should abound in the distressed debt market.Indications are that distressed investors (both old and new) are successfully raising funds because investor expectations are buoyant.
Download or read book Recovery Rates from Distressed Debt Empirical Evidence from Chapter 11 Filings International Litigation and Recent Sovereign Debt Restructurings written by Manmohan Singh and published by International Monetary Fund. This book was released on 2003-08 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: On a credit rating-adjusted basis, spreads on U.S. high-yield debt have typically been regarded as a lower bound for emerging market debt. However in the C-rated and defaulted segment, emerging market debt has traded at lower spreads than similarly rated U.S. high yield debt. We show that the lower spreads reflect the fact that the total returns from defaulted debt in the emerging markets have been significantly higher than returns from similarly rated high yield defaulted debt under Chapter 11.
Download or read book The Altman Foothill report on investing in distressed securities written by Edward I. Altman and published by . This book was released on 1990 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Distressed Securities Market written by Philip Samuel Russel and published by . This book was released on 1996 with total page 284 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Corporate Financial Distress and Bankruptcy written by Edward I. Altman and published by Wiley. This book was released on 2006-02-17 with total page 384 pages. Available in PDF, EPUB and Kindle. Book excerpt: A comprehensive look at the enormous growth and evolution of distressed debt, corporate bankruptcy, and credit risk default This Third Edition of the most authoritative finance book on the topic updates and expands its discussion of corporate distress and bankruptcy, as well as the related markets dealing with high-yield and distressed debt, and offers state-of-the-art analysis and research on the costs of bankruptcy, credit default prediction, the post-emergence period performance of bankrupt firms, and more.
Download or read book The Guide to Distressed Debt and Turnaround Investing written by Kelly DePonte and published by . This book was released on 2007 with total page 236 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Corporate Defaults Workouts and the Rise of the Distressed Asset Investment Industry written by Douglas J. Cumming and published by . This book was released on 2015 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines corporate distress episodes for the United States, Western Europe, and Asia during the late twentieth century, and charts the emergence and growth of new actors in the corporate restructuring process - distressed asset investment firms. We analyse the formation and growth of these firms; including their investment focus, geographic and product expansion strategies. We find that the distressed asset investment industry is dominated by firms based in the United States, is relatively concentrated in terms of number of firms and assets under management, due in large part to early movers developing distinctive investment capabilities through participation in landmark transactions, relationship-specific resources, and scale effects. We examine empirically how the rise of distressed asset investment firms has altered the pricing dynamics in the corporate distressed market. We model the demand and supply of distressed debt over a thirty year period using historical data on loan issuances, corporate defaults and recovery rates. We find that the demand for distressed asset investment has become more responsive to supply over time with falling supply-demand ratios, implying lower investment returns. We conjecture that the emergence and growth of distressed asset investment firms has resulted in private sector workouts becoming more competitive and more efficient, especially in the United States.
Download or read book Report on Market Size and Investment Performance of Defaulted Bonds Bank Loans written by Edward I. Altman and published by . This book was released on 2002 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book IMF Staff Papers Volume 54 No 2 written by International Monetary Fund. Research Dept. and published by International Monetary Fund. This book was released on 2007-09-26 with total page 236 pages. Available in PDF, EPUB and Kindle. Book excerpt: Vol. 54, No. 2 includes three notable contributions from the Seventh Jacques Polak Annual Research Conference (ARC) hosted by the IMF in November 2006. Its lead paper, by Olivier Blanchard of Harvard University, is the 2006 Mundell-Fleming Lecture (delivered at the ARC), which analyzes current-account deficits in the advanced economies. Other papers in this issue look at the relationship between international financial integration and the real economy. Other papers discuss whether (or not): i) the next capital account crisis can be predicted; ii) accepted definitions of debt crises are adequate; iii) the Doha Round of trade talks (if they are ever successfully completed) will lead to preference erosion; and finally iv) there is room for political opportunism in countries deciding between money-based or exchange-rate-based stabilization programs.
