Bulge Bracket banks workout/restructuring groups?

RX exists at many BBs in an advisory capacity despite deploying balance sheet. In my experience it’s more of advisory / lev fin lean with a push (at least today) on more rescue financing transactions. Banks may have conflicts if they’re a lender so there’ll be instances where they can or can’t engage with a client as an FA in a specific way – just part of the pros/cons with being at a BB. Obviously a Moelis or a Greenhill won’t have that issue in RX given there’s no deploying balance sheet from any part of the house, but won’t have many benefits that come with being a BB either.

Workout is a group that exists to manage existing bank risk, primarily in loans or something similar. A bank will house X exposure in Y instrument/security inside Z part of the bank and a situation will occur. The bank will have to mark the position down from par to whatever, say 70c, and then move it to workout oversight who then proceeds to manage the risk and try to figure out what to do to recoup value. You get the position at a shitty level and look for upside from there. Workout usually sits on the private side of the house. Typically distressed situations given the drastic price moves, yes, but it’s not an investor seat – job is to work your way out of sticky situations, trading out of chunkier size positions (think about the quantum of exposure a bank takes) and figuring out what to do as a creditor.