Where to start? The Private Debt/Credit/Special Situations/HFs space
Like many participants on this forum, my initial inclination was towards pursuing (PE). However I recently gained interest in the debt side of things, and have been doing research to better understand the space, numerous strategies, funds and career paths. These all seem less straightforward (than the equity side of things) and very unique especially in the space of event driven HFs. Consequently, I am currently seeking recommendations for literature or guides that comprehensively delineate this field. I am open to receiving any advice or insights that could help me navigate this industry..
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I would recommend reading Moyers Distressed debt analysis. Phenomenal book about distressed debt investing strategies, capital structures (including arbitrage), and what it means to “be a creditor”. Even if your interested in equities, it’s a great read to understand the event driven / game theory aspect of investing.
Once you crush this classic (perhaps take some notes too), you’ll be a lot more knowledgeable about the space and probably want to read it again lol
Great book and helps with insomnia too
100%, I’d also recommend Michael Gatto’s Credit Investor’s Handbook (much more of a practitioner’s guide than Moyer imo).
Appreciate the color!
This is spot-on, highly recommend both Gatto's book and Pari Passu Newsletter
+1 for Moyer
Fabozzi handbook is a must have as well. No need to read the whole thing - there is a great section on distressed credit securities and other pertinent sections you just look up as you need to.
+1 for Moyer
And perhaps:
- Private Debt by Nesbit - the two books are quite ok reads: Opportunities in Corporate Direct Lending, and Yield, Safety and The Emergence of Alternative Lending
- Mezzanine Financing by Nijs
- Structured Finance by Larreur
- Structured Finance and Collateralized Debt Obligations by J. Tavakoli
There are a number of papers that cover different aspects of Private Debt, Special Sits and HF as well - you can find most of them on Google Scholar or Web of Science. I’ll try to list some of the literature I read when I started - but some are a bit old:
The Role of Alternative Investments in Strategic Asset Allocation by Douglas Cumming, Lars Helge Haß, Denis Schweizer
Portfolio Optimization When Asset Returns Have the Gaussian Mixture Distribution (Imperial College) by Ian Buckley, Gustavo Comezana, Ben Djerroud and Luis Seco
The Performance of Hedge Fund Strategies and the Asymmetry of Return Distributions by Bill Ding and Hany A. Shawky
Hedge Funds: Structure, Strategies, and Performance by H. Kent Baker and Greg Filbeck
I have a huge list, happy to share if you’re interested in something in particular.
Brand new (Feb. 2024 I believe) book by Michael Gatto, The Credit Investor’s Handbook. Recommend reading after Moyer.
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