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Distressed Debt Replies |
rffrydr
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Location: Sunny California
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rffrydr
Moderator
Joined: 30 Oct 2005
Posts: 16932
Location: Sunny California
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 Posted: Sat Jan 09, 2010 10:23 am Post subject: |
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SecondMarket.com
It's up and running now--take a stroll down Novastar Ln, wander amber fields of CDOs and freely exchange Lehman debt (which has become quite active lately after the WAMU tax clawback).
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rffrydr
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Posts: 16932
Location: Sunny California
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rffrydr
Moderator
Joined: 30 Oct 2005
Posts: 16932
Location: Sunny California
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| Posted: Mon Dec 14, 2009 3:46 pm Post subject: |
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Tim Melvin
| Quote: | Care Investment
12/14/2009 9:19 AM EST
While I was out Friday, we finally got the liquidation announcement from Care Investment Trust (CRE). I suspected that would be the final verdict of the strategic review and see this as good news. The proxy with management's estimate of the value to be distributed has not been released yet, but I have a hard time believing it will be anything less than book value. The company has more cash than debt, so the value of the properties and remaining loan value will determine the ultimate payout to shareholders. The net assets are on the books for almost $260 million vs. a current market cap of just $146 million, so there is a margin for error in my estimates. I am holding the stock through the liquidation and expect to profit nicely form the transaction. |
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rffrydr
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Joined: 30 Oct 2005
Posts: 16932
Location: Sunny California
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| Posted: Fri Sep 04, 2009 1:49 pm Post subject: |
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Finally a distressed debt fund. I'm all over this--I think.
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New Mutual Fund Offers Distressed Debt Exposure
By Don Dion
TheStreet.com Contributor
9/4/2009 1:42 PM EDT
Click here for more stories by Don Dion Try Jim Cramer's Action Alerts PLUS
CLICK HERE NOW
With more protection and liquidity On August 31, Martin Whitman's Third Avenue Management announced the launch of a new fund called the Third Avenue Focused Credit Fund ( TFCVX - commentary - Trade Now). It has a $2,500 minimum investment and an annual operating fee of 1.71%. The fund, Third Avenue's first new offering in almost 8 years, is one to watch as it provides investors with significant exposure to distressed debt.
Distressed debt is loosely defined as the debt of companies that have filed for bankruptcy or are likely to file for bankruptcy.
Traditionally the market for distressed debt has been largely dominated by the hedge fund industry. However, with Third Avenue's newest offering, investors have the same opportunity to expose themselves to the risky holdings in mutual fund form. Interestingly, the fact that this instrument is a mutual fund rather than a hedge fund also means investors are given a higher level of protection and complete liquidity.
The strategy behind TFCVX harkens back to Whitman's investment style, which involves looking for undervalued assets. The ratings issued to the fund's underlying holdings span the spectrum from AAA to unrated. Third Avenue Focused Credit invests in below-investment-grade credits including junk bonds, bank loans and convertible bonds or preferred stock in hopes of finding big returns. |
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rffrydr
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rffrydr
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HenryTo
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Joined: 06 Aug 2004
Posts: 11734
Location: Los Angeles, California
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nodoodahs
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Joined: 06 May 2005
Posts: 2408
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| Posted: Sat May 03, 2008 11:20 am Post subject: |
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I was considering HYG on March 10. 
http://billrempel.com/2008/03/10/personal-trades-for-march/
Passed on it, primarily because I'm determined to eat my own cooking as a system trader. 
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rffrydr
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Joined: 30 Oct 2005
Posts: 16932
Location: Sunny California
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| Posted: Sat May 03, 2008 9:23 am Post subject: |
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This might not be their boat but the risk's now is that they'll miss it:
http://stockcharts.com/h-sc/ui?s=SHV:HYG&p=D&b=3&g=0&id=p37175478005
Note what july did to the volume scale.
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Last edited by rffrydr on Sat May 03, 2008 10:49 pm; edited 1 time in total |
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HenryTo
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Posts: 11734
Location: Los Angeles, California
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| Posted: Fri May 02, 2008 12:02 pm Post subject: |
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According to P&I, only about half of the billions raised for distressed debt, mortgage, bank loan, and other kinds of credit funds in the past nine months have been invested. Many credit managers are still "waiting for markets to hit rock bottom" before they start investing these funds.
The estimated amount of cash sitting on the sidelines is at least $20 billion. |
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rffrydr
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Location: Sunny California
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