DISTRESSED SECURITIES ANALYSIS
WHAT ARE DISTRESSED SECURITIES?
Distressed securities are debt or equity securities of a company that is undergoing bankruptcy or is near that stage. For that reason, distressed securities are often sold at a substantial discount, which makes them an attractive investment opportunity.
Essentially, investors in distressed securities capitalize on the possibility that the distressed company is not in such dire straits as the market believes it to be. For that purpose, they perform extensive financial analysis of the factors that cause the reduction of the securities’ value. They also enquire into what the liquidation value of the company would be and how much would different creditors receive if the worst comes to the worst.
SKILLS REQUIRED TO WORK ON DISTRESSED SECURITIES ANALYSIS
Like with any investment activity, investing in distressed securities requires core technical skills in financial analysis. You need to be competent in financial accounting and also be able to perform valuations and financial modeling. By its nature investing in distressed securities is risky. Often, when the distressed company files for bankruptcy, the purchased assets become worthless. That is why it takes a knowledgeable and skillful investor to decide which securities are worth investing in.
HOW CAN THE IFI TRAINING COURSE HELP ME IN MY CAREER?
Whether you want to invest in distressed securities on your own or you want to work in a financial institution that does this kind of investment, the IFI training course is designed to equip you with all the technical skills and knowledge you need to succeed in your endeavors. You will cover financial statement analysis, corporate valuation and financial modelling extensively. Additionally, our seasoned investment bankers will be available to share their experience with you and address any specific queries you might have.