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Distressed Debt Hedge Funds: How to Become a Vulture Capitalist

Mergers and Inquisitions

Ask anyone interested in distressed debt hedge funds for “the pitch,” and they’ll probably mention one of the following: “It’s like long/short equity or credit , but more interesting!” Distressed debt investing offers advantages over other hedge fund strategies , but the marketing often oversells the benefits.

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London bus operator Arriva bought by US private equity firm

The Guardian: Mergers & Acquisitions

Arriva was put up for sale in 2019 by its German owner, Deutsche Bahn, which had originally sought to offload the company to reduce its own debts. Continue reading.

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China’s GDP Grew in 2023, but Economic Strains Lurk

The New York Times: Banking

percent, as China worked to export more to make up for weak demand, high debt and a steep property contraction at home. Gross domestic product expanded 5.2

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Collateralized Debt Obligation (CDO)

Wall Street Mojo

What is a Collateralized Debt Obligation? Table of contents What is a Collateralized Debt Obligation? How does Collateralized Debt Obligation (CDO) Work? CDOs provide investors with a diversified portfolio of debt instruments across different risk levels. read more , etc.

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Pandemic-Related Deal Litigation Highlights Buyer Leverage in Transactions Requiring Debt Financing

Cooley M&A

The decisions from the court on those preliminary matters, as well as the arguments raised by legal counsel, offer some valuable lessons for sellers considering sale transactions that require debt financing, and may motivate sellers to re-evaluate certain provisions and remedies that have become customary in those transactions.

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Understanding the Tax Shield in Corporate Finance

Wizenius

Tax shield refers to the reduction in taxable income that results from taking advantage of allowable deductions, such as interest expenses on debt. This means that a company can reduce their taxable income by deducting the interest payments made on their debt from their taxable income. million, resulting in a lower tax bill.

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Reviving Distressed Assets: The Business Model of Asset Reconstruction Companies

Wizenius

The assets can include non-performing loans, bad debts, and other distressed assets. This can include restructuring the debt, liquidating assets, or selling them to other investors. After acquiring the company, Edelweiss ARC worked to restructure its debt, improve its operations, and turn it around.