Last month we announced to readers that we were helping organize The Global Forum on Investing in Distressed Debt. In the coming weeks, we will be bringing you in depth interviews with a number of conference presenters talking about the major issues going on in the distressed debt market today. Before we get to that though, I wanted to take a little time out to discuss what I think the primary benefits are of attending a conference like this.
Distressed debt is, in my opinion, one of the most lucrative opportunities to intelligent investors because it requires a substantial amount of knowledge, both on the valuation as well as technical/legal side. 98% of investors out there will look at a distressed situation and say: "Too complicated - Pass" or "I don't understand this case - sell the paper." That is where the opportunities arise.
Today's distressed market is characterized by ever increasing complicated bankruptcy proceedings - In addition, the onset of a more and more pre-packs means the distressed investing professional needs two things: technical knowledge and as many contacts as possible.
The Global Forum on Distressed Debt Investing promises to provide attendees with both benefits. The current list of presenters is absolutely incredible - ranging from very experience bankruptcy attorneys to buy side professionals who can intelligently talk and extract certain nuances from today's distressed debt market. This is an invaluable resource to market participants. For example, soon we will have an interview on the site with one of the nation's leading experts on fraudulent conveyance - And given the vast amount of cases that are going that route (in one fashion or another), you have to be equipped with that knowledge to intelligently invest in this market.
Professional contacts are key in this market. Any distressed conference provides a fantastic avenue for meeting up with different players in this market, whether it be restructuring professionals, lawyers, the sell side, or buy side investors. In my opinion, this conference in particular, given its extensive schedule, will bolster these networking opportunities. In a market where forbearance agreements and pre-packs are the norm, the investor with the most contacts will surely have a better chance at being at the negotiating table, where IMO, the real money is made.
We hope you attend the Global Forum on Investing in Distressed Debt coming up in September. If you have any question, feel free to shoot me an email.