Distressed loans / debt primer?
Any primers on distressed loan and debt investing? I’ve already read Moyer and the HL primer doc.
Any others much appreciated.
Trending Content - Private Equity Forum
Career Resources
https://www.wlrk.com/webdocs/wlrknew/ClientMemos/WLRK/WLRK.28050.22.pdf
moyer is great, but it's outdated.
if you want to understand the actual mechanics of loans, you need to understand the contract.
the technicals: read "the lsta's complete credit agreement guide". distressed loan investing is an arbitrage of contractual loopholes. if you can't spot a trap door in a "restricted payment" covenant, you can't invest.
the reality: stop reading textbooks. go to a restructuring administration site (like kroll or stretto). pull the "first day declaration" (usually the declaration of the CFO/CRO) of a recent bankruptcy.
it is a 50-page summary where the cfo explains exactly why the company died, how the capital structure failed, and who gets paid what.
that is real time education
Sharing a broader library from the legal side. Given the interest surrounding covenants for LMEs, will also add some high-yield and credit guides. All are publicly available, except the LSTA and the STB's Credit Commentary.
Restructuring:
Structuring Liability Management Transactions (Mayer Brown): https://www.freewritings.law/wp-content/uploads/sites/24/2022/06/IFLR_L…
If you're short on time, there's a presentation on the same content: https://www.mayerbrown.com/-/media/files/perspectives-events/events/202…
High-Yield:
Credit:
If there is enough interest will also add some academic papers on bankruptcy law.
Post the academic papers pls. I’m getting a hard on over here.
I gotta say… I’m as flaccid as a worm in a jar of melatonin… but I’m still holding out hope for those papers! 🤞
Thank you for posting all of this info though. True gold mine.
Officiis deserunt harum fugit rerum. Et repudiandae accusantium itaque officiis. Eveniet perferendis consequatur est sed impedit numquam quas. Beatae laborum aut dolore amet nisi ut. Ut deserunt porro corporis ut. Excepturi cupiditate non voluptatem tenetur at veniam dolor unde.
Quod expedita velit autem ullam adipisci. Dolorem laboriosam est occaecati qui sit autem suscipit consequatur. Et voluptatibus blanditiis non fuga sed. Tempore dolores in asperiores incidunt porro modi eos. Quod consequuntur eos et dolores voluptatem reiciendis ea. Eum aspernatur et velit. Voluptatem quia dolores consequatur nihil non. Perferendis assumenda qui vero.
Voluptatem rerum et occaecati. Alias similique aut suscipit distinctio impedit eos saepe et.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...