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PJ SOLOMON’s Anders Maxwell Presents a Primer on the Corporate Bankruptcy Process in New CFA Brief

  • September 11, 2018

PJ SOLOMON Managing Director Anders Maxwell presents a primer on the legal underpinnings and process of corporate bankruptcy in a new CFA Institute Research Foundation brief on the Foundations of High-Yield Analysis.

In his primer, Mr. Maxwell introduces bankruptcy’s legal underpinnings and process, the relationship between a reorganization’s cause and effect, the importance and challenge of distressed company valuations, patterns of default over the business cycle and current trends in corporate bankruptcies. He also describes the conditions under which an out-of-court restructuring is most feasible. Additionally, Mr. Maxwell presents two case studies to illustrate the pitfalls of relying on market prices as indications of intrinsic value. One bankrupt company’s securities declined prior to the filing and rose afterwards; the other company’s securities displayed the opposite pattern.

The CFA Institute Research Foundation is a not-for-profit organization that sponsors independent, in-depth research on current issues important to investors and investment professionals around the world.

The full report can be accessed here.