Investment Banking

Distress asset funding

Assets are usually considered “distressed” when their value is severely depressed for a reason particular to the issuer and not because of general market conditions. The most common situation is a commercial loan on which the issuer has defaulted on payments of interest or principal. Distressed asset investing generally, and emerging markets distressed investing in particular, are undertaken by a small number of firms. Implementing the strategies successfully requires specific skills and particular economic structures. For those firms with the appropriate professional skills and capital base, however, the strategies can be extremely profitable.