Dr. Edward Altman Says Commercial Bankruptcies Are Set to Spike in 2024-25
Octus Radio
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How to Invest in a Distressed Company
I'm highly skeptical about investing too much in companies that both have interest coverage less than one and for long periods of time look like a failing company. I think distressed industry, I prefer a strategy where the company is not yet looking like a bank book company, but is in distress for whatever reason. That I think is a better strategy because then you get the best of potentially both worlds. If it doesn't go bankrupt, you get the higher yield plus the capital appreciation. And if it does go bankrupt and you're in a position to change around the management and the asset structure as well as the capital structure and do it effectively, then you might want to double down and buy the debt again
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