Tags: Bankruptcy, Bernie Madoff, DE Shaw, Distressed, Hedge funds, Lehman Brothers, Morgan Stanley, SEC
Tags: AIG, Autos, Citigroup, Distressed, FSA, Greece, Hedge funds, Lazard Freres, New York, Political Contributions, Sovereign debt, Taxes, Tim Geithner, Toyota, U.S.. Treasury, Yahoo
Tags: AIG, Autos, Bank of America, Countrywide; The Fed, Distressed, Facebook, Goldman Sachs, mortgages, SEC, Taxes, UBS
Tags: Avenue Capital, Bankruptcy, Distressed, Hedge funds, Marc Lasry, Videos
No surprise to us (and we agree), he says the union comes out the big winner. And he worries about Chapter 22 despite GM emerging with a much lighter debt load:
Tags: Autos, bailout, Bankruptcy, Barack Obama, Distressed, Economy, Ed Altman, GM, Politics, Taxes
Tags: Autos, Bankruptcy, Chrysler, Distressed, GM, Jon Stewart, Videos
He says opportunities abound in distressed debt, especially in the debt of casinos…
Tags: Avenue Capital, Avenue Investments, bankruptcies, Bankruptcy, bonds, credit markets, Distressed, Distressed investing, Hedge funds, high yield bonds, Marc Lasry
With GM on the ropes, and CEO Rick Wagoner having been under seige for quite some time, it's not really a surprise that he's said to be stepping down according to unnamed Bloomberg sources.
Tags: Autos, Barack Obama, Distressed, GM, Politics, Revolving Door
Tags: Apollo, CDS, Distressed, Politics, Real Estate
With the buyout market effectively shut down, private equity firms necessarily must look elsewhere for returns. Apollo's focus will be on its roots: debt investing. They've apparently had little problem attracting money in this market, having finished raising nearly $15 billion in December; the fund is already around 20-25% invested, mostly in credit. Apollo CEO spoke at the SuperReturn converence in Berlin. According to Reuters:
Tags: Apollo, Distressed, Leon Black, Private equity
Tags: Clarium Capital, Distressed, Gold, Greenlight Capital, Hedge funds, Peter Thiel
That’s according to the Financial Times:
Goldman is moving to shift $150bn of assets to the balance sheet of the Utah bank. These would include loans to private clients and other assets that would be found more typically at a traditional commercial bank.
Goldman also plans to talk to US regulators to identify up to $50bn in assets it could buy from troubled lenders. These, too, would be put under the Utah bank.
Goldman seeks to buy up to $50bn in assets – Financial Times
Tags: Credit Crunch, Distressed, Goldman Sachs
Charlie Gasparino just reported a rumor that Barclays may be interested in buying Lehman’s entire capital markets group. He called it ‘ironic’ that *now* they want the unit given that they backed out of buying Lehman Brothers yesterday. We don’t think it’s ironic at all. In fact, it’s totally in line with Bob Diamond’s remarks from last week that appeared in the Financial times:
Mr Diamond appeared to
quash rumours that Barclays could bid for Lehman. He declined to comment on
Lehman, whose share price has lost 77 per cent of its value over the past year,
but indicated that Barclays would wait at least until prices hit distressed
levels.“I have consistently said that in investment banking, our strategy is to grow
organically and hire the right people,” he said. “It would take a very, very
attractive opportunity to change that. I think that is highly unlikely but not
impossible.”
Buying Lehman yesterday without Fed guarantees would have put them on the hook to guarantee Lehman trading obligations which could have been very sticky and potentially very expensive. It’s no wonder they backed out. Absent a Fed backstop, we don’t imagine that any bank would be thrilled with that ‘bargain’. Buying Lehman assets out of bankruptcy is another matter entirely. That could be the "very, very attractive opportunity" that he was talking about.
Tags: Bankruptcy, Barclays, CNBC, Credit Crunch, Distressed, Lehman Brothers
The man that banked the largest in the fall of the financials appears to be poised to move in the other direction — by buying distressed securities of financial institutions. Last July news emerged that John Paulson was readying a fund of undisclosed size for that purpose with a planned December launch. It’s now scheduled to launch on October 1. According to the Financial Times, last week Paulson told clients on a conference call that he’s still very bearish. He has predicted that worldwide credit losses will come in at 1,300 billion , and still expects $500 billion more. But he’s apparently ready to start nibbling on mortgage securities, banks and brokers as their prices near his targets, especially one-off opportunities. And for financial firms issuing new shares and convertibles, Paulson could be their new go-to guy.
Tags: Banks, Credit Crunch, Distressed, Hedge funds, Paulson & Co
The chase for distressed debt is getting more and more crowded as Apollo is
the latest to raise money. It’s looking for over $2 billion for new
fund that will buy troubled loans from European banks.
Other players involved in the distressed debt market include Blackstone, which raised a separate $1.3bn (£697m) fund to invest in the area, and Carlyle, which raised $1.35bn.
According to recent figures from Private Equity Intelligence, distressed debt funds raised 38pc more capital in the first six months of the year globally, bringing in a total of $33bn.
Apollo seeks £1.1bn for distressed debt
- Daily Telegraph
Tags: Apollo, Blackstone, Carlyle, Distressed, Hedge funds, Private equity
Ed Altman, the finance professor at NYU’s Stern School of Business famed for
creating the Z-Score bankruptcy predictor model that so many business school
students and finance professionals have studied for decades, says that GM and
Ford are in big trouble. He told Bloomberg TV that his model indicates that
"both are in very serious shape and the markets reflect that", and
that the model shows that the two companies are "on the verge of
bankruptcy"….
Tags: Autos, Bankruptcy, Business Schools, Credit Crunch, Distressed
Perella Weinberg’s $837 million Xerion Fund, which they bought last October, doesn’t seem to be having any problems making money in this tough market. According to Bloomberg, per a letter they sent to their investors, the firm is up a whopping 24% year to date. That’s after a 37% gain in 2007. They’ve made money on distressed, and on bets that debt of financial services firms would go south. According to Dan Arbess, who founded the fund:
Tags: Bear Stearns, Distressed, Hedge funds, Perella Weinberg
Just in time for the long expected upturn in distressed debt, Citigroup is conserving capital, and restructuring its global special situations group. The firm will exit proprietary trading in distressed securities. Citi has has been in the process of an "orderly wind down" of some of its assets, but not at "fire-sale" prices, at least according to a WSJ source. Jeff Jacob and John Humphrey, who joined Citi from Merrill Lynch in 2004 to start the proprietary distressed debt trading book, will exit the firm in two to three months to start their own hedge fund , also focusing on distressed. They’ll be taking around six other staffers with them and will be "seeded by a significant but undetermined amount of capital from Citigroup" according to the WSJ. Some remaining special situations group exployees with be absorbed by other Citi divisions.
Citigroup Winds Down Distressed-Debt Desk – WSJ
Tags: Citigroup, Distressed, Hedge funds
Tudor Investments has hired a bunch of the former Bear Stearns distressed debt group, including its two co-heads:
Tudor Investment Corp, a hedge fund group
led by veteran trader Paul Tudor Jones III, on Tuesday said it hired the former
co-heads of Bear Stearns’ distressed debt group to build a new credit business.Tudor, which manages over $18 billion, said
Gregory Hanley and Alan Mintz, the former senior Bear executives, are joining
the firm, along with other members of the Bear credit team including Mitchell
Sussman, Eric Friel and Howard Norowitz.
Tudor hires former Bear distressed debt execs – Reuters
Tags: Bear Stearns, Distressed, JPM Chase, Revolving Door
Tags: Derivatives, Distressed, LBO / MBO
The field of those getting ready to chase distressed investments has gotten more flush and crowded with cash as veteran vulture player Oaktree Capital has raised a record $11 billion fund, making it the world’s largest distressed debt fund…
Tags: Bankruptcy, Distressed, Hedge funds
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