Jump to Navigation


Distressed Debt Investor Strategies: "Pack your bags, Martha, the train is leaving the station and it is time to climb on board."

October 8, 2008

WaMu. Lehman Brothers. Fannie Mae. Bailout. At a time when the financial markets are in crisis and the US economy is on the edge, Bracewell & Giuliani LLP commissioned Debtwire to survey 100 fund managers, institutional investors and prop and trading desks regarding their investment strategies in the newly revived distressed debt market. While the outside world can sometimes perceive distressed debt investors as bottom feeders pouncing on weakness, we see these investors as an invaluable source of liquidity that could play a pivotal and critical role rebuilding the economic security of our country. The biggest question at the moment, however, is "have we reached bottom?"

With such doom and gloom surrounding Wall Street, our survey respondents project distressed investments will increase dramatically. As the credit crunch enters its second year, amid spiking default rates and widening systemic risk, this report provides up-to-the-minute insights as the thinking and predictions of distressed investors, whether they be secondary investors buying distressed debt, as par investors managing fallen angels in their portfolios, or other market participants honing their multi-tranche strategies.

We hope you find the Survey to be interesting and informative, and as panic sweeps through the world's financial markets and we feel the effects of these turbulent times, our Bracewell team looks forward to working with you to identify untapped opportunities and to maximize recoveries around the world.