This report presents results and discussion of the investment performance of those bonds and bank loans that have defaulted on their scheduled payments to creditors and continue trading in the public market while the issuing firm attempts a financial reorganization. Monthly total return measures...

We are experiencing dynamic changes in the interest and concern with credit risk management despite historically low default rates and losses in the loan and corporate bond markets. The reasons are that lending institutions are increasingly comfortable with transacting their assets in...

This study assesses the stock return performance of 131 firms emerging from Chapter 11. Using differing estimates of expected returns, we consistently find evidence of large, positive excess returns in 200 days of returns following emergence. We also examine the reaction of our sample firms'...

Nineteen-ninety-eight was a mixed performance year for the high yield bond market in the United States, with much below average returns and spreads over default-risk-free Treasury Bonds but continued relatively low default rates and losses and another record year of new insurance. Returns and...