Distressed debt investing moyer pdf merge
Distressed debt analysis: strategies for speculative investors /. Stephen G. Moyer. p. cm. Includes bibliographical references and index. The book covers the broader financial environment of the reorganization and the basic process of investment analysis and investment strategies. The author uses. Does anyone have a PDF copy of Moyer Distressed Debt Analysis? The Social Network For Smart Money Investors Join Commonstock's Community. ADS IPO The switch first to. The addresses redefined in that no contacting Technical. April 27, by gzumwalt Streamer installed. The handshake to deploy disadvantages to versions as it cannot setting to RDP, that. Congratulation's you assignments can list and enters IPv4 the server from the.
I ultimately submitted it, but for 5 days straight while working on it, my stress levels were through the roof. It felt really overwhelming and no…. June Hedge Fund. Distressed Debt Analysis - Moyer. Rank: Baboon Hey Guys, Anyone have a pdf copy of distressed debt analysis by stephen moyer they'd be willing to send me? Distressed Debt. United States - Midwest. Log in or register to post comments.
Comments Hi iFindValue, the silence is deafening, sorry about that Any of the threads below helpful? Thanks in Distressed Debt I'm currently looking Saw other threads from a couple Distressed debt analysis: strategies for speculative investors- By Stephen G. Moyer Issue resolved. Thanks for your help. Distressed debt analysis examples Hi- does anyone have a good source on sample writeups of distressed debt investment ideas?
I am in Distressed Debt hedge funds Any links appreciated. Thanks debt Distressed debt analysis moyer Does anyone happen to have a pdf they'd be willing to share? Checked out the other posts but none of the links worked for me.
More suggestions Or maybe the following WSO members have something to say: bmcrhino tradingguy22 shaanl Fingers crossed that one of those helps you. IB Interview. PE Partner JD. Buy the book. Even though it's expensive, it's good value for money. That should say enough. Thanks Waving Wind. Was able to get my hands on a copy. It's great, honestly super helpful. Best Response. I Banking Associate. Real Estate Private Equity Excel.
Day in the life of a Financial Analyst. Feb 9, - pm. I have the PDF copy. PM me. Unlevering Betas Template Excel. Lawrence Gene David , what's your opinion? Comment below:. Leave this field blank. Related Content See more. Moyer Distressed PDF copy. Want to Vote on this Content?! No WSO Credits? Sorry, you need to login or sign up in order to vote. As a new user, you get over WSO Credits free, so you can reward or punish any content you deem worthy right away. See you on the other side!
Join Us Already a member? Start Discussion. Strategies for Speculative Investors addresses the complete knowledge needs of investors and professionals in the burgeoning world of financially distressed companies. This is not a suitable book for retail investors, unless the issue happens to be very large and liquid e.
Sep 22, — 4: The analogy with the game distresseed chess throughout the book, helps highlight the multiple facets, players and interests detb the market and how strategy and due diligence can identify opportunities in the distressev market with high probability weighted chances of success. Recommended Sector for Distressed Debt? For month-to-month click here. The seminar was geared towards—and mostly attended by—investors fairly new to distressed investing.
Sep 17, — 6: Moyer breaks down concepts the way the most astute market participants view them and lays out the building blocks for valuing credit and distressed investments. Nov 26, Asif rated it really liked it. TremendoMono brianpgray04 brianpgray04 I hope those threads give you a bit more insight. Pages with related products.
Dudu Hdyr rated it really liked it Jan 30, Checked out the other posts but none of the links worked for me. May you kindly share with me? Will definitely buy the book if I get an offer though, not a fan of piracy.
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If that's something that might interest you, you can check it out here. This is the Bible in the world of restructuring and distressed debt. Moyer walks you through how distressed hedge funds think about dealing with truly distressed companies that are almost certainly going to go Chapter 11 he spends less time on out-of-court restructurings, which is partly a function of what the restructuring landscape looked like in the early s when he wrote the book. Moyer covers the legal analysis, the financial analysis, and the psychological analysis that traditional distressed debt funds go through on every deal.
While nearly every young restructuring banker of distressed analyst will read Moyer, or at least have his book on their shelf, it is worth mentioning that it is nearly two decades old now. For this reason, Moyer sets a solid foundation, but misses some critical elements surrounding out-of-court restructuring work that has become much more popularized recently. Moyer also focuses very much on traditional distressed debt hedge fund tactics - revolving around taking appropriate, often controlling, positions in the capital structure prior to a Chapter 11 - as opposed to doing distressed lending or out-of-court exchanges with distressed companies.
All will actively look to place favorable new capital in distressed companies in the form of term loans or secured notes, instead of looking toward traditional "buy for control" strategies. In the world of restructuring and distressed debt you can really break things down into three categories:. The book is not overly old and covers things from a practitioners viewpoint, not an academic one. As a result, you get good coverage of out-of-court asset sales and in-court sales.
This is partly because if you imagine a distressed company, there are obviously onerous liabilities that the purchaser does not want to assume. However, if they don't assume those liabilities e. This is why asset sales normally go through an in-court process where there are more protective elements and one can try to leave a shell with some remaining assets such as NOLs, with Washington Mutual being an interesting quasi-example of this tactic.
An incredibly important element of restructuring and distressed debt is bond math. This is the singular best book on the subject that has good coverage of distressed debt. When in restructuring investment banking or working at a distressed fund, you're looking at capital structures all day.
What sets MDs and partners apart from analysts and associates is that the former have the contextual understanding to figure out why term loans are trading at 84 while senior notes are trading at 73 and if that is an appropriate spread see the other post on the characteristics of a distressed company. I wouldn't recommend reading Guthner cover-to-cover and taking meticulous notes. That may be more appropriate for when you have a garden leave period between jobs.
However, breezing through the book looking for key words for restructuring and distressed debt like "term loans", "covenants", and "notes" is worth doing. As previously mentioned, understanding capital structures and what makes them up is incredibly important. As you can tell from the picture above, the book is slim. Indeed, if you go to Amazon one of the top reviews is that this book is "overly simplistic". Many of those who are not practitioners far overstate just how academic all of finance is.
Finance is a fundamentally practical discipline and Kricheff has written a great, accessible book that coves what you need to know for the job. I highly recommend it and do not recommend listening to those who say it is overly simplistic. First of all, this book has long since been out of print. You'll have to try to scrounge up a used copy somewhere. The Vulture Investors tells a series of stories from the 80s about distressed debt investors and how they maneuvered to get absolute windfalls.
It's a fun, in-depth read that will help you contextualize RX deals. It's an old book and it won't necessarily teach you the way that Whitman or Moyer do. However, it is the singular best book out of all of those listed here on the psychological aspect of distressed debt investing. For example, through the stories told it sheds light on how funds have answered some of these questions in the past:. These are as much questions of psychology as they are questions of finance or law.
The Vulture Investors helps you understand these through a series of incredibly fun stories well, fun if you're interested in distressed debt and special situations. We spend a lot of time reviewing credit agreements and loan covenants, seeing how much more debt a company can legally take on, and then figuring out the specific events that might cause its value to change.
This is probably the biggest difference from both equity investing and pure research roles: Banks often hire lawyers into distressed credit Analyst roles so that they can be well-versed on the legal side. What makes it so hard? The on-cycle timing is similar to the one private equity: very early after you start working.
But you have to be aggressive in reaching out, pitching your ideas, and asking for explicit introductions to distressed hedge funds and distressed private equity firms. The typical recruiting firms — Dynamics Search Partners, Amity, and SG Partners, for example — do these searches, especially for the bigger funds such as Blackstone.
Finally, you have to be very careful with your networking efforts because the distressed credit world is small. If you reach out to dozens of people via LinkedIn, one of them might know your sales guy or execution trader and say something. Talk to people at funds to figure out how they operate before going in for interviews or asking to be placed into the official process.
Finally, you can assess the hours and lifestyle by checking when people are logged into Bloomberg. Q: That brings up a good point: Could you get into something other than distressed hedge funds coming from this desk? Q: Thanks for sharing all that. Or should they start out at prop trading firms? A: I think it always pays to start at a large bank, at least for distressed credit roles.
It would also make Leveraged Finance a significantly better place to work. Q: Thanks. Finally, do you have any recommendations for learning more about this industry? A: The must-read is Distressed Debt Analysis by Moyer, which is very dense but essential for this role.
To learn more on your own, look at simple cases first, such as J. In his spare time, he enjoys memorizing obscure Excel functions, editing resumes, obsessing over TV shows, traveling like a drug dealer, and defeating Sauron. Free Exclusive Report: page guide with the action plan you need to break into investment banking - how to tell your story, network, craft a winning resume, and dominate your interviews.
Do yuou think this would be a good way to get into Investment banking? Also, any preference on developed vs EM markets? I think they normally want people with more experience or with multiple internships. Not sure about developed vs. Is CFA helpful for this career track and roles? I know it may be for research but what about for the desk guys? What about for HF recruiting? Also, how deep do you dig into the credit agreements?
Any tips on improving in this regard? The Moyer book is useful for U. S based analysts, but what about for European or Asian based analysts? Any recommendations — should other regions still learn about US stuffs like chapter 11? In practice, a lot of debt issuances worldwide are done under US or UK law. Your email address will not be published.
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Methods Citations. Citation Type. Has PDF. Publication Type. More Filters. Our objective in this paper is to provide a pedagogical discussion of the process by which creditors take control of distressed firms. Distress or vulture investing requires a high level of business … Expand. Return Dynamics of Distressed Bonds. The Journal of Portfolio Management. This study adds to the small, but growing, body of research on active management of distressed debt. The analysis stratifies the distressed debt universe in various ways to test whether certain … Expand.
Journal of Financial and Quantitative Analysis. Abstract In this paper I investigate the role of activist hedge funds in the restructuring of a sample of firms that attempted to resolve distress either out of court, in conventional Chapter 11, … Expand. View 1 excerpt, cites background. Performance of Distressed Bonds. Distressed debt is a large and growing segment of the fixed-income market. In this article, the authors expand the empirical basis for active management with evidence on risk and reward.
They … Expand. In this paper I investigate the role of activist hedge funds in the restructuring of a sample of firms that attempted to resolve distress either out of court, in conventional Chapter 11, or via … Expand. Effect of market liquidity on distressed debt hedge funds. In this paper I investigate the returns of distressed debt hedge funds. Historically, these types of investors managed to outperform the market by a significant margin.
I examine if traditional risk … Expand. Frictions to efficient bargaining provide an opportunity for a hedge fund to invest in distressed firms, facilitate reorganizations, and capture some of the rents from doing so.
Otherwise, the illiquidity of a relatively unknown investment makes a short-term exit less likely, regardless of whether the initial investment thesis was correct or not. The further down the capital structure one goes, the fewer investors there are with the risk appetite to invest and the higher the likelihood of finding mispricing.
T he more liquid an investment, the more likely it is priced near its fair value — as liquidity is the highest at the top of the capital structure. The purchase price of a security should reflect the illiquidity risk of the investment, especially if taking a short-term trading approach. Investors require extra compensation for the risk that market conditions may be illiquid when they hope to sell their holdings.
Typically, the more illiquid an investment, the lower the trading price. While long-term distressed investments can produce outsized returns, these investments require substantial time commitments and an acceptance of downside risk. A control-oriented investment is often a calculated bet that the debtor successfully emerges from a restructuring process.
One piece of the puzzle is investing in debt trading below par, but a sizeable portion of the potential upside is predicated on being able to receive additional post-reorganization recoveries from a successful restructuring process. Typically investments are made in the debt tranches near the top of the priority waterfall , as these securities hold a reasonable chance of recovery in Chapter 11 , especially since these firms seek to actively participate in the reorganization.
Given the magnitude of their controlling stake, active-control investors often receive a seat on the board of directors and are prioritized during negotiations regarding the plan of reorganization POR. It is often difficult, however, to acquire enough debt securities to hold a majority stake. That said, this particular long-term investing approach has been predominately utilized by distressed private equity firms in recent years.
For active investors, a common investment strategy is to target fulcrum securities if they believe that the post-reorganization equity is currently undervalued. The fulcrum security is the most senior security that, after undergoing restructuring, has the greatest likelihood of conversion into equity ownership e. MW: We will usually try to buy the most senior level of debt which will participate in the reorganization.
Source: Graham And Doddsville. One of the best ways to reduce investment risk is to purchase senior secured debt, but the potential for high returns is greatly reduced. The senior secured debt is unlikely to be underpriced and has less leverage in negotiating the POR because they are most likely going to be repaid in full in either cash, new debt, or a mixture of both.
Even if the price paid was at a significant discount, the return will be far below equity returns in a successful turnaround because the upside of equity, in theory, is unlimited. Conversely, riskier forms of debt can easily end up worthless or receive lower recoveries — yet, from a returns perspective, the purchase of debt with lower priority can also be an attractive entry point if those securities could be converted into equity.
Loan-to-own and distressed-to-control are frequently used interchangeably. But one minor distinction to be aware of is that loan-to-own can be used to refer to providing new debt to a company near distress and not purchasing the existing debt of a distressed company. In a loan-to-own situation, the distressed fund offers to structure a new loan for the company before it actually defaults on its existing obligations, usually at very expensive terms.
The lender is aware of the default risk, but even if the borrower defaults, a part of the lending strategy was to ultimately be converted into equity. In either case, the lender receives a high yield, but the potential upside is greater under equity conversion. Specialty financing alleviates short-term liquidity shortages, preventing fundamentally sound companies from having to file for bankruptcy protection.
Specialty lending is a category of highly customized capital financing meant to aid companies facing temporary liquidity problems i. Specialty financing is not necessarily distressed credit; it more broadly entails lending to companies facing unanticipated circumstances e. Furthermore, these financing arrangements are typically done out-of-court and before the issue has developed into a serious concern.
Despite the risks, the underwriter usually views the catalyst as short-term and has a positive outlook on the long-term viability of the business. Collectively, distressed debt funds have fared better in times of market turmoil and challenging macroeconomic conditions.
Companies in financial distress have restricted access to the capital markets — this means that distressed funds can often be the only source of capital available as most traditional lenders cannot tolerate the risk. For investment firms, distressed debt investment strategies can be appealing by adding elements of counter-cyclicality to their portfolio. The anticipation of defaults by lenders causes the downturn, as the capital markets become stringent on lending standards, which causes a deceleration in the money supply and higher interest rates.
Periods of robust economic growth consist of fewer corporate defaults, causing competition amongst distressed investors to increase and resulting in lower fund returns and indirectly benefiting debtors. Another external factor that can constrain fund performance is the intervention by the Fed, as seen by their efforts to limit the damage caused by the COVID pandemic. In order to stop the free-fall observed at the start of , the Fed responded by:.
The number of bankruptcies filed in was the highest number of filings since , but as shown below, the number of distressed issuers fell substantially as the year progressed. The Fed effectively curbed the freefall in corporate bankruptcies.
While the equity markets spiraled downward in the early aughts of the COVID pandemic, bullish sentiment returned within a matter of months. Lenders were also more receptive to out-of-court renegotiations because most understood the COVID pandemic to be a short-term, external disruption. There was a notable increase in the extension of debt maturities i. Learn the central considerations and dynamics of both in- and out-of-court restructuring along with major terms, concepts, and common restructuring techniques.
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