Distress Investing: Martin Whitman - 2009

Sep 7, 2016·Roy Sebag

Distress Investing: Principles and Technique was written by the founder of Third Avenue Management LLC - Martin Whitman. As a leading specialist in the distressed markets field, Whitman has condensed over 10 years of his experience into an enlightening text.

Distress Investment is one of the most complex areas of finance. The distress investment environment which exists today has not only been molded by the past but remains extremely dynamic. From the financial crisis of 2008 which had devastating effects to new laws and new innovations which create new opportunities, the environment constantly changes, and this rarely follows a predictable pattern. The principles and techniques in the book offer an in-depth explanation of the fundamental elements of distress investing, and instruction on how these can be applied effectively.

The text is broken down into 4 distinct parts: the General Landscape of Distress Investing, Restructuring Troubled Issuers, the Investment Process, and Cases and Implications for Public Policy, which collectively span buy-and-hold investing from performing loans to reinstated issues of a reorganized issuer.

Whitman uses the changes to the US bankruptcy code and creditor rights to cash bailouts, to categorize various situations which are distressed, from pricing issues and tax disadvantages, to funding plan reorganizations and arbitrage opportunities- all of which offer the reader excellent insight and instruction for analysis of a distressed environment. Important case studies are included (such as the Kmart and Home Products International), which provide an excellent business perspective for large and small investing deals alike.

A didactical and interesting account, Distress Investing: Principles and Technique is an absolute must-read for all interested in the field as well as students and professional investors.