Capital Ideas Podcast Risky business: Investing in troubled companies
Aug 29, 2024
Todd Saligman is an insightful analyst from Capital Group focusing on troubled companies, while Steve Watson is a seasoned portfolio manager with expertise in crisis investing. They dive into the unique strategies for identifying opportunities in distressed firms, emphasizing a contrarian mindset. The duo discusses the resilient travel industry during the pandemic, highlighting contrasting outcomes between legacy and low-cost airlines. They also explore the resurgence of the cruise sector and delve into the psychological nuances influencing investment decisions.
AI Snips
Chapters
Transcript
Episode notes
Crisis Investing Rationale
- Look for opportunities to invest in companies during times of crisis.
- These times create negativity and offer chances to form differing views from the market.
Cruise Industry During COVID
- During COVID, Todd Saligman saw an opportunity in cruise companies, despite the widespread panic.
- He analyzed their balance sheets and unique capital structure, realizing they could withstand minimal revenue for years.
Cross-Team Collaboration
- Collaborating with fixed income colleagues can help understand complex financial structures.
- This collaboration revealed the cruise companies' unique debt structure and potential for survival.