Bad debt is (not) a bad friend
Investing in distressed debt is a less known investment strategy of astute investors. Bonds with uncertain cash flow are the subject of their focus, especially in the Anglo-Saxon financial systems. The range of realized rates of return is very wide and retail investors are out of the game. One aspec...
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Association of Serbian Banks
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doaj-439bf449dc0f4448bacb48f7552d5aa42020-11-24T20:53:01ZengAssociation of Serbian BanksBankarstvo1451-43542466-54952016-01-0145415016710.5937/bankarstvo1604150Z1451-43541604150ZBad debt is (not) a bad friendZavišić Aleksandar0Advokatska kancelarija Zavišić Investing in distressed debt is a less known investment strategy of astute investors. Bonds with uncertain cash flow are the subject of their focus, especially in the Anglo-Saxon financial systems. The range of realized rates of return is very wide and retail investors are out of the game. One aspect of this strategy are investments in non-performing loans, that is the purchase of distressed loans at a discount. It does not take a genius to see that one of the reasons of insolvency in the Serbian economy is the long-standing low economic growth in Serbia, in the region and in Europe. High systemic risk coupled with the inefficient bankruptcy process and out-of-court restructuring are the context in which the problem of non-performing loans is to be solved. A series of other factors related to banks, real estate market, tax considerations, as well as the lack of supportive actions to prevent the increase of non-performing loans act as additional constraints. In mid-2015, a strategy was adopted in Serbia, which recognized this silent and prolonged crisis that has been accumulating within the banking system.http://scindeks-clanci.ceon.rs/data/pdf/1451-4354/2016/1451-43541604150Z.pdfnon-performing loaninvestment strategysecuritiesdistressed debtmarket of nonperforming loansinvestorsrestructuringreorganization |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Zavišić Aleksandar |
spellingShingle |
Zavišić Aleksandar Bad debt is (not) a bad friend Bankarstvo non-performing loan investment strategy securities distressed debt market of nonperforming loans investors restructuring reorganization |
author_facet |
Zavišić Aleksandar |
author_sort |
Zavišić Aleksandar |
title |
Bad debt is (not) a bad friend |
title_short |
Bad debt is (not) a bad friend |
title_full |
Bad debt is (not) a bad friend |
title_fullStr |
Bad debt is (not) a bad friend |
title_full_unstemmed |
Bad debt is (not) a bad friend |
title_sort |
bad debt is (not) a bad friend |
publisher |
Association of Serbian Banks |
series |
Bankarstvo |
issn |
1451-4354 2466-5495 |
publishDate |
2016-01-01 |
description |
Investing in distressed debt is a less known investment strategy of astute investors. Bonds with uncertain cash flow are the subject of their focus, especially in the Anglo-Saxon financial systems. The range of realized rates of return is very wide and retail investors are out of the game. One aspect of this strategy are investments in non-performing loans, that is the purchase of distressed loans at a discount. It does not take a genius to see that one of the reasons of insolvency in the Serbian economy is the long-standing low economic growth in Serbia, in the region and in Europe. High systemic risk coupled with the inefficient bankruptcy process and out-of-court restructuring are the context in which the problem of non-performing loans is to be solved. A series of other factors related to banks, real estate market, tax considerations, as well as the lack of supportive actions to prevent the increase of non-performing loans act as additional constraints. In mid-2015, a strategy was adopted in Serbia, which recognized this silent and prolonged crisis that has been accumulating within the banking system. |
topic |
non-performing loan investment strategy securities distressed debt market of nonperforming loans investors restructuring reorganization |
url |
http://scindeks-clanci.ceon.rs/data/pdf/1451-4354/2016/1451-43541604150Z.pdf |
work_keys_str_mv |
AT zavisicaleksandar baddebtisnotabadfriend |
_version_ |
1716798357563768832 |