Absolute Priority Rule
Loan-to-OwnMulti
Senior fully recovered before junior in liquidation
Source: encyclopedia
Anchorage Capital distressed
FundsMulti
Anchorage Capital Group
Source: encyclopedia
Apollo distressed
FundsMulti
Apollo distressed credit funds
Source: encyclopedia
Argentina sov debt restructure
Sovereign DistressedMulti
Argentina restructurings 2001 2014 2020
Source: encyclopedia
Aurelius Argentina holdout
Sovereign DistressedMulti
Aurelius Argentina holdout strategy
Source: encyclopedia
Bank loan distressed
Trading-OrientedLong
Buy distressed senior bank debt
Source: CAIA
Bed Bath & Beyond 2023
Specific CasesMulti
BBBY 2023 collapse retail meme equity
Source: encyclopedia
Bond vs CDS basis
Cap Structure ArbL/S
Long bond + buy CDS = pure spread
Source: encyclopedia
Brady bonds historical
Sovereign DistressedMulti
Brady bonds 1990s LatAm restructurings
Source: encyclopedia
California PG&E 2019 wildfire
Specific CasesMulti
PG&E 2019 wildfire-liability BK
Source: encyclopedia
Centerbridge distressed
FundsMulti
Centerbridge distressed + PE
Source: encyclopedia
Cerberus distressed
FundsMulti
Cerberus Capital distressed
Source: encyclopedia
Chesapeake Energy 2020
Specific CasesMulti
Chesapeake Energy 2020 oil-bust BK
Source: encyclopedia
Chrysler 2009 363 sale
Specific CasesMulti
Chrysler 363 sale 2009
Source: encyclopedia
Convertible bond vs equity
Cap Structure ArbL/S
Convertible arb (covered earlier)
Source: encyclopedia
Country Garden China RE 2024
Specific CasesMulti
Country Garden China RE 2024 default
Source: encyclopedia
Cram-down plan confirmation
Loan-to-OwnMulti
Cram-down imposes plan over creditor objection
Source: encyclopedia
Cramdown contested confirmation
RisksMulti
Junior creditor cramdown contests
Source: encyclopedia
Credit Suisse AT1 wipeout 2023
Specific CasesMulti
CS AT1 wipeout March 2023 controversy
Source: encyclopedia
Critical vendor motion
Loan-to-OwnMulti
Critical vendor motions to keep operations
Source: encyclopedia
DIP financing strategy
Loan-to-OwnIncome
Debtor-in-possession financing super-priority
Source: encyclopedia
DIP roll-up controversy
RisksMulti
DIP roll-up benefits some creditors
Source: encyclopedia
Davidson Kempner
FundsMulti
DK multi-strat with distressed sleeve
Source: encyclopedia
Debt-for-equity exchange
Loan-to-OwnLong
Convert debt to new equity at reorg
Source: Wikipedia
Disputed claims trading
Trading-OrientedLong
Trade unliquidated/disputed claims
Source: IBInterview
Distressed mean-reversion
Trading-OrientedLong
Buy heavily-discounted bonds expect bounce
Source: encyclopedia
Distressed-to-control PE
Loan-to-OwnLong
PE firm distressed buyout for control
Source: WallStreetPrep
Drop-down assets transfer
RisksMulti
J Crew drop-down asset transfer 2017
Source: encyclopedia
Equitable subordination claims
RisksMulti
Court can subordinate misbehaving creditor
Source: encyclopedia
Equity short hedge
HedgingL/S
Short related equity to hedge bond exposure
Source: encyclopedia
Evergrande 2021 default
Specific CasesMulti
Evergrande $300B liabilities default 2021
Source: encyclopedia
First Republic 2023
Specific CasesMulti
First Republic JPM May 2023 deal
Source: encyclopedia
Fraudulent conveyance LBO
RisksMulti
LBO fraudulent transfer claims
Source: encyclopedia
Frontier Communications 2020
Specific CasesMulti
Frontier telecom 2020 BK
Source: encyclopedia
Fulcrum security identification
Loan-to-OwnLong
Map enterprise value vs claims to find fulcrum
Source: IBInterview
GDP-linked bonds Argentina warrants
Sovereign DistressedMulti
Argentina GDP warrants Atlantic 2005
Source: encyclopedia
GM bondholders 2009
Specific CasesMulti
GM 2009 bondholder cramdown
Source: encyclopedia
Ghana 2022 default
Sovereign DistressedMulti
Ghana 2022 sov default
Source: encyclopedia
GoldenTree distressed credit
FundsMulti
GoldenTree credit-focused fund
Source: encyclopedia
Greek PSI 2012
Sovereign DistressedMulti
Greek PSI haircut 2012
Source: encyclopedia
Hedge with CDS
HedgingMulti
Buy CDS to hedge long bond exposure
Source: encyclopedia
Hedge with index CDX
HedgingMulti
CDX HY index for broad hedging
Source: encyclopedia
Hertz 2020 IPO post-Chapter-11
Specific CasesLong
Hertz emerged 2021 reorg shareholders preserved
Source: encyclopedia
Holdout litigation NY judgment
RisksMulti
Holdouts can sue / attach assets
Source: encyclopedia
J Crew 2020 retail BK
Specific CasesMulti
J Crew 2020 retail BK
Source: encyclopedia
JCPenney 2020 retail BK
Specific CasesMulti
JCPenney 2020 retail apocalypse
Source: encyclopedia
LBO cov-light vs cov-heavy
Cap Structure ArbL/S
Trade based on covenant strength
Source: encyclopedia
Lebanon Eurobonds default
Sovereign DistressedMulti
Lebanon 2020 default
Source: encyclopedia
Lehman Brothers LBHI claims
Specific CasesMulti
Lehman LBHI claims trading post-2008
Source: encyclopedia
Liquidating trust interests
Trading-OrientedLong
Trade liquidating trust interests
Source: encyclopedia
Litigation trust units
Trading-OrientedMulti
Trade litigation-trust units (Lehman LBHI)
Source: encyclopedia
Loan-to-own creep coordination
RisksMulti
Coordinated lender groups force majority
Source: encyclopedia
Loan-to-own fulcrum
Loan-to-OwnLong
Buy fulcrum security to control reorg
Source: IBInterview
Lone Star distressed
FundsMulti
Lone Star distressed RE + private equity
Source: encyclopedia
Long bond short equity
Cap Structure ArbL/S
Long bonds short equity (downside hedge)
Source: encyclopedia
Long equity short CDS
Cap Structure ArbL/S
Bullish equity hedged with CDS protection
Source: encyclopedia
Make-whole call enforcement
RisksMulti
Make-whole calls enforcement varies by court
Source: encyclopedia
Marathon Asset Mgmt
FundsMulti
Marathon Asset Management
Source: encyclopedia
Mezz / 2nd lien play
Trading-OrientedLong
Junior secured / 2nd lien debt
Source: encyclopedia
Negative basis trade
Cap Structure ArbLong
Bond yield > CDS spread = negative basis arb
Source: encyclopedia
No-fiduciary indenture trustee
RisksMulti
Indenture trustees limited fiduciary duties
Source: encyclopedia
Oaktree distressed leader
FundsMulti
Oaktree Capital - largest distressed manager
Source: encyclopedia
Pari-passu different maturities
Cap Structure ArbL/S
Trade same-priority bonds with different maturities
Source: Wikipedia
Passive buy-and-hold distressed
Trading-OrientedLong
Buy distressed claims hold for recovery
Source: CAIA
Plan of Reorganization POR
Loan-to-OwnMulti
Plan of reorganization filing/voting
Source: WallStreetPrep
Post-bankruptcy equity recovery
Trading-OrientedLong
Buy reorg equity post-emergence at low prices
Source: IBInterview
Pre-bankruptcy speculation
Trading-OrientedLong
Buy debt anticipating better-than-priced recovery
Source: Wikipedia
Preferred stock arbitrage
Cap Structure ArbL/S
Preferred vs common pricing inefficiency
Source: encyclopedia
Puerto Rico GO bonds restructure
Sovereign DistressedMulti
PR Title III restructuring (PROMESA)
Source: encyclopedia
Right-sizing balance sheet
Loan-to-OwnMulti
Reduce debt service to sustainable level
Source: WallStreetPrep
Roll-up DIP first-day
Loan-to-OwnMulti
Roll-up existing debt into DIP at filing
Source: encyclopedia
Russia 2022 forced default
Sovereign DistressedMulti
Russia 2022 forced default sanctions
Source: encyclopedia
Sculptor Capital
FundsMulti
Sculptor (formerly Och-Ziff)
Source: encyclopedia
Sears 2018 retail BK
Specific CasesMulti
Sears 2018 long-decline BK
Source: encyclopedia
Sector index hedge
HedgingShort
Short XRT KRE etc to hedge sector exposure
Source: encyclopedia
Senior secured low-risk recovery
Trading-OrientedLong
Senior secured - lower risk reward
Source: CAIA
Senior vs junior bonds
Cap Structure ArbL/S
Trade senior vs junior priority bonds
Source: Wikipedia
Silicon Valley Bank 2023
Specific CasesMulti
SVB Mar 2023 receivership
Source: encyclopedia
Silver Point Capital
FundsMulti
Silver Point Capital distressed
Source: encyclopedia
Singer Elliot litigation
Sovereign DistressedMulti
Elliot Singer aggressive sovereign litigation
Source: encyclopedia
Single-point-of-entry vs MPE
RisksMulti
SPE / MPE bank-resolution strategy
Source: encyclopedia
Sri Lanka 2022 default
Sovereign DistressedMulti
Sri Lanka 2022 default first Asian post-COVID
Source: encyclopedia
Stalking horse 363 sale
Loan-to-OwnMulti
Stalking-horse bid in 363 sale process
Source: encyclopedia
Strategic Value Partners
FundsMulti
SVP distressed credit
Source: encyclopedia
Subordinated debt high beta
Trading-OrientedLong
Subordinated unsecured highest reward/risk
Source: encyclopedia
Substantive consolidation
RisksMulti
Court can consolidate parent + sub estates
Source: encyclopedia
Suning 2021
Specific CasesMulti
Suning China retail conglomerate distress
Source: encyclopedia
Tax NOLs at reorg
Trading-OrientedLong
Net operating losses preserve at reorg
Source: encyclopedia
Tonon Brazilian sugar BK
Specific CasesMulti
Tonon EM corp BK
Source: encyclopedia
Toys-R-Us 2017 BK
Specific CasesMulti
Toys-R-Us LBO + BK 2017
Source: encyclopedia
Trade-claims investing
Trading-OrientedLong
Buy trade-vendor claims at deep discount
Source: IBInterview
Ukraine 2022 standstill
Sovereign DistressedMulti
Ukraine standstill on Eurobonds 2022
Source: encyclopedia
Up-tier transactions exchange
RisksMulti
Serta 2020 up-tier exchange controversy
Source: encyclopedia
VRIs value recovery instruments
Sovereign DistressedMulti
GDP-linked recovery instruments (Argentina warrants)
Source: encyclopedia
Venezuela bonds defaulted
Sovereign DistressedMulti
Venezuela + PDVSA bonds defaulted
Source: encyclopedia
Voidable preference clawback
RisksMulti
90-day insider 1y preference clawback
Source: encyclopedia
Vulture-fund Argentina holdouts
Sovereign DistressedMulti
Elliot Mgmt holdouts vs Argentina (won)
Source: encyclopedia
WeWork 2023 BK
Specific CasesMulti
WeWork 2023 BK restructuring
Source: encyclopedia
Yellow Trucking 2023
Specific CasesMulti
Yellow trucking 2023 BK
Source: encyclopedia
Zambia 2020 default
Sovereign DistressedMulti
Zambia G20 Common Framework restructuring
Source: encyclopedia
An encyclopedia of publicly documented strategies for education. YCAI does not recommend, endorse, or trade any of these. Not investment advice.