FICC Focus Matt Doheny on Investing, Yellow, and FTX: State of Distressed Debt
Jun 14, 2024
Matt Doheny, founder of North Country Capital and expert in turnaround strategies, shares insights on high-profile bankruptcies like Yellow Corp and FTX. He discusses the complexities of restructuring, detailing the fierce competition between lenders and the unique auction process at Yellow. Cohost Nagisa Balluku adds her expertise on the latest bankruptcy developments, including issues surrounding Red Lobster and WeWork. Their engaging conversation uncovers the intricacies of distressed debt and the evolving landscape of crisis management.
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Hockey Nights Led To A Career Shift
- Matt Doheny described moving from law to Deutsche Bank's distressed desk and how those relationships pulled him into investing.
- He recalled playing in a Thursday hockey league with buy‑side contacts that led to job offers and career change.
Three Pillars Of Distressed Investing
- Doheny says three pillars drive successful distressed work: hard work, showing up, and conviction in your view.
- He also stresses technical capital‑structure bets as a repeatable source of value.
Yellow Collapsed When Customers Pulled
- Doheny recounts Yellow's rapid collapse after customers pulled business following labor disputes.
- He compared it to past trucking bankruptcies where market share evaporated and left liquidation as the only option.