Distressed Assets
Assets sold to avoid insolvency by defaulting or soon-to-default companies
Distressed assets are assets that their owner is forced to sell to remain solvent (i.e.liquidity问题）。这意味着资产的所有者（可能是公司，企业所有者，甚至是个人）处于财务困境中。
An owner in financial distress is likely to be in default or close to default. Some of the resolutions available to them in the United States are to file for Chapter 7 or 11 bankruptcy.
A Chapter 7 bankruptcy is an application to wind down the business or, in the event of an individual, sell all of the personal assets to pay down the debtors.
另一方面，第11章破产是重组的应用债务试图将来还清债务。提出第11章破产将表明所有者有足够的流动性资产，并且公司/个人可能有可能成功进行重组。
When a person/company is in financial distress, there would be a deepvaluationdiscount in their assets. The assets could be financial and/or physical assets. Physical assets include Real Estate, Business Units, Furniture, etc… Financial Assets includeCorporate Bonds,Common and Preferred Equity, Trade Claims, etc…
这些资产的深入估值折扣是由于普通买家回避了这些资产的事实，因为这些资产通常对他们的风险食欲过于危险。购买胃口风险的买家也将寻找额外的回报，以弥补涉及更高的风险。
Examples of such assets would include the debts of the Chinese real estate firms in theEvergrande liquidity crisis或美国房地产资产Great Financial Crisis. In the case of the credit crisis of the Chinese real estate firms, Shimao Group's note due 2024 was trading at 53.7 cents to the dollar on 15th December 2021, and Evergrande's note due 2022 was trading at 26 cents to the dollar on 27th December 2021.
不良资产的买家
Buyers of these assets are generally the competitors of the distressed firms (for business units),对冲资金(HF)(distressed financial assets), Private Equity (PE),Banks, and Private Institutions.
对冲基金选择投资不良金融资产的原因？
HFs may invest in distressed financial assets for several reasons. First, they may have better information on the distressed firm and have reasonable confidence in the company to emerge from bankruptcy as a viable enterprise.
Second, they may invest in them because of the substantial profits they would gain should the distressed firm emerge from bankruptcy.
For example, an HF may invest 1% of their overall assets under management (AUM) on a distressed firm's corporate bond, which is trading at a deep discount of 20 cents to a dollar of par value. After a year of the HF investment, the distressed firm managed to successfully restructure their business and are no longer in financial distress. Their corporate bond is now trading at 80 cents to a dollar. The HF decides to sell away their investment at that price.
In this example, the HF netted a profit of 300% excluding transaction costs and added areturn of investment(ROI) of 3% on their overall AUM. This is in spite of them only allocating 1% of their AUM to the investment.
第三，对冲基金通常具有承受与这些资产相关的高风险的食欲和能力，因此可以为此带来高回报。
在资产中，债务是最寻求的，因为在重组时可以消除股权。这是因为如果陷入困境的公司提出第7章或第11章破产，则债券持有人的优先事项更高。
购买不良金融资产的途径
There are three common ways to purchase distressed financial assets for investment purposes.
The most common way to purchase distressed financial assets would be the usual way of purchasing financial assets, which is through a金融交流.
另一种方式购买陷入困境的金融资产s would be to contact the firm directly to extend them a line of credit. However, this method is usually done in collaborations with HFs or investment banks to reduce non-systematic risk.
此外，有一种非正统的方式来购买不良金融资产，这可能使投资者能够获得优惠定价。他们可能会从共同基金中购买新苦恼的金融资产，因为这些资产不符合适用于其的风险标准，因此必须卸载。
由于这些职位可能是庞大的职位，如果共同基金将以优惠的价格出售给投资者，如果他们购买了相当大的头寸，以便基金可以及时地卸载它，并将交易收益重新利用交易收益到其他产品。这种情况仅在非常罕见且特殊的情况下发生，例如当投资级债券成为垃圾债券（即堕落的天使）或垃圾债券变得困扰时。
苦恼的投资和对散户投资者的影响的性质
个人（零售）投资者不太可能购买这些资产，这是因为与不良投资相关的复杂性和固有风险。这主要是由于投资者与受灾公司之间有关其重组能力并继续作为实体而存在的信息差距。
Value discovery is particularly difficult in distressed investing as the assets are unlikely to be evaluated by investment banks or research firms in detail, leading to outsiders only being able to gather limited information. This is due to the lack of widespread interest in the product which means that investment banks and other service providers have little to no incentive to conduct research on them to generate fee income from a customer base.
Further, insiders tend to only provide limited information to outsiders because there are rarely insiders with a vested interest that benefits from the increase in prices before or during a restructure. As a result, distressed investing favors firms with the manpower, skills, and infrastructure to investigate both the market and the assets which are likely to be the HFs and PE firms.
To get a complete picture of the investment, investors would need to meet with management, shareholders, and major creditors, as well as review financial information and visit the company. Factors to consider in deriving a complete picture include the strength of a business plan, management's history in the business and the company, and the presence of visible cash flows.
This is almost in no way what a retail investor is capable of and therefore the nature of distressed investing limits itself to sophisticated investors.
For an in-depth understanding of the considerations behind distressed debt investing by institutional investors in 2015, please have a look at the following video:
Emerging Markets Distressed Assets
Over the last two decades, the growing markets of Asia, Eastern Europe, and Latin America have been a major source of these assets. This is because crises and defaults are an inevitable element of investing in emerging markets (EM). Corporate loans default, trade at a discount, and are restructured; sovereigns create bad economic situations, crash their economies, default on commercial debt, learn from their mistakes, and rebuild. Therefore, in such a scenario, it is attractive for firms chasingα投资。
However, investing in emerging markets presents various risks that are not present in mature economies. Some of the risks are internal politics, foreign relations, macroeconomic variables,货币估值和可兑现压力, tax and regulatory issues, trading and settlement systems,monetary policy, and market liquidity. All of the risks influence investments in government and corporate debt.
Free Resources
要继续学习和发展您的职业，请查看这些其他有用的WSOresources:
或想Sign upwith your social account?