Journal article icon

Journal article

Reputation and the market for distressed-firm debt

Abstract:

Our analysis explains how vulture investors (vultures) can maintain and exploit their rep- utations for toughness. Vultures leverage their reputations to extract concessions from stockholders in debt restructurings. To profit from these concessions, vultures must first acquire debt from incumbent bondholders. Buying only the tranches most likely to render them marginal creditors maximizes vulture leverage in debt-purchase negotiations. Vulture profits are proportional to the degree of uncerta...

Expand abstract

Actions


Authors


Publication date:
2003-01-01
URN:
uuid:bd45bc2a-e008-4e99-bdbb-e0d9a993713a
Local pid:
oai:eureka.sbs.ox.ac.uk:1116

Terms of use


Metrics


Views and Downloads






If you are the owner of this record, you can report an update to it here: Report update to this record

TO TOP