Financial innovation, new regulations, and the 2007–2008 financial meltdown have significantly influenced today's distress investment landscape. Distress investing often defies conventional wisdom, making it a challenging area in finance. Martin Whitman, founder of Third Avenue Management LLC and a pioneer in distressed markets, alongside Dr. Fernando Diz from Syracuse University, authored this resource to navigate these complexities. Emerging from their annual seminars at Syracuse's Martin J. Whitman School of Management, this guide offers essential principles and techniques for distress investing, applicable in real-world scenarios. The book is structured into four parts: the General Landscape of Distress Investing, Restructuring Troubled Issuers, the Investment Process, and Cases and Implications for Public Policy. It covers buy-and-hold strategies in distressed credits, including performing loans and reorganized issuers' issues. Readers will learn to analyze distressed situations, including pricing issues, arbitrage opportunities, tax disadvantages, and funding reorganization. Case studies from notable distress investing deals, such as Kmart and Home Products International, provide valuable insights. In today’s turbulent economic climate, distress investing offers enticing opportunities, and this guide positions you to excel in this endeavor.
