13 Oct MIT Sloan Lecture on Investing in Distressed Credit: Why Due Diligence Matters
Hedge fund investors and entrepreneurs Messrs. Stephen Hazelton and Chris Hontvet recently spoke at MIT Sloan where they provided MBA students with an insiders’ perspective on the due diligence process of investing in the corporate bond and bank loan market.
With the dislocation and opportunity now present in the distressed fixed income market, the asset class is increasingly in favor on Wall Street. Topics covered included the importance of corporate structure and covenant analysis in determining default risk, recovery rates and potential returns.
Stephen and Chris highlighted the importance of covenants in high yield bond indentures and bank loan credit agreements and walked through real-life examples using Street Diligence’s innovative covenant analytics platform.