Great weekend read here on distressed debt investing. We’re experiencing a once in a lifetime opportunity in distressed debt. Everyone should read this whether you’re a rookie or a veteran. Link here. For more on distressed debt investing please see here.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.
Could you define what you mean by “distressed debt”? Sometimes people use the term to refer to debt with a yield at least 10 points above treasury rates. Sometimes people use the term to refer to investments in defaulted instruments. Corporates were cheap in Nov/Dec 08 and March 09, but prices have spiked a lot since then. Why do you think they are still cheap? If you’re referring to defaulted instruments, why won’t prices continue to as the supply of defaulted instruments increases faster than the pool of available purchasers?
Comments are closed.