Distressed debt in Germany: What's next? Possible innovative exit strategies

Arbeitspapier

During the past two years, private equity funds have acquired substantial portfolios of nonperforming loans from banks in Germany. Typically a private equity investor does not commit funds unless exit strategies are clearly defined. The usual exit strategies for distressed debt investors are fix it (restructuring and turnaround), sell it (sale of debt or equity), or shut it down (liquidation). A new alternative exit strategy for NPL investors considered here is the transfer of credit recovery risk.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: HfB - Working Paper Series ; No. 73

Classification and Topics

• Classification: Wirtschaft ; Insurance; Insurance Companies; Actuarial Studies ; Financial Institutions and Services: Government Policy and Regulation ; Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
• Subject: Focus ; diversification ; specialization ; monitoring ; bank returns ; bank risk ; Non Performing Loans ; Distressed debt investing ; Synthetic securitization ; Collateralized debt obligations ; Credit risk transfer ; Credit derivatives ; Credit default swaps ; Credit recovery swaps ; Credit portfolio management ; Credit portfolio risk ; Credit portfolio returns ; Efficiency of credit risk portfolio allocations ; Learning effects

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Dickler, Robert A. ; Schalast, Christoph
• Event: Veröffentlichung
• (who): HfB - Business School of Finance & Management
• (where): Frankfurt a. M.
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/27841
• URN: urn:nbn:de:101:1-2008082793
• Last update: 10.03.2025, 11:44 AM CET