Distressed debt, where to start?

I’m interested in learning about distressed debt investing. I assume there is a big emphasis on asset values and such but I’m sure there is a lot more to it. Any books out there ya’ll would recommend me or online sources? I’ll play with our bloomberg later on but any one have any functions or commands that will help me learn? Thanks in advance.

Edit, i’ve read a few articles on mergers and inquisitions that were interesting if anyone wants to learn as well.

Moyer and Gilson are two legit books IMO

Distressed-Debt-Investing dot Com blog is awesome. Really breaks down the key bankruptcy concepts for beginners.

Thanks, will look into them tonight.

Also, if anyone is interested, also found a few articles on the cfapubs.org site

@hpracing007, what sort of annualized yields are you looking for?

Not quite that far along, I’m in talks with a distressed debt fund for an opportunity and I need to learn as much as I can before I talk to any higher ups.

I’ve worked a little in the distressed asset space. Honestly I would encourage you to look at practical examples from the industry you are considering rather than books at this point. There should be plenty of examples of offering memoranda or restructuring debt terms proposed by struggling companies. From there you should be able to get what the going rates for distressed debt are (hopefully as comparable to your case as possible) and consequently a range of potential returns. You might also want to look at typical terms offered by distressed debt funds to co-investors/LPs.

Honestly, in distressed debt cases there is usually a lot going on behind the scenes and without fully understanding all the dynamics (of which there are a lot - management position, industry, banks & security, etc. etc.) you will be pretty much lost in the fog. I’m not sure books will be of much help, except possibly explaining the process in general.

That’s good advice picton; I will look up some distressed companies and also search for some case studies. In the last few days I’ve been watching as many YouTube talks on the topics that I can find and I think that had given me a good base to go off.

yeah heres the link to that Moyer book he mentioned above http://www.amazon.com/Distressed-Debt-Analysis-Strategies-Speculative/dp/1932159185

The Moyer book is legit