Distressed Investing
A Grounded Travel Company Prepares for Takeoff
The bond we’ll introduce today is trading at a 16% discount to par. The parent company was extremely profitable until the pandemic derailed its business. Now, three years removed from the pandemic, the company is turning a corner and on its way to becoming extremely profitable once again.
Portfolio Update: Corporate Bankruptcies Reach Financial-Crisis Levels
Corporate bankruptcies are running at their highest rate since 2010, the year after the Great Recession. As defaults rise, investors will likely become more cautious about taking credit risk and it should become easier to find attractive values in lower-quality bonds.
Welcome to the Planet of the APEs
The company we’ll introduce today is deeply distressed… a formerly solid business on the ropes through no fault of its own. The risks are high, but the profits will likely be higher.
Portfolio Update: Four Deeply Distressed Industries to Watch
In our view, the distress ratio is likely to double or triple from its current level by late 2023 or early 2024. And that means a crop of new distressed opportunities will soon arise.
Video Did Not Kill The Radio Star
Our latest addition to the Porter & Co. Distressed Investing portfolio is a bond that is secured by the assets of the largest owner of radio stations in the United States. It’s trading at a 17% discount to its $1,000 face value.
Portfolio Update: Big-Name Retailers Falter
Below, you’ll find the latest market and portfolio update from our Director of Distressed Investing, Martin Fridson. We’ll release an update two weeks after each monthly issue. (Martin will also include his trademark short introductory poem.)
Defensive Investing: Heads You Win, Tails You (Still) Win
The key to defensive distressed investing is simple: find investments that will hold up well when the market declines – and go up when the market eventually recovers. Today’s recommendation offers a high chance of upside with a built-in margin of safety.
