The Art of Vulture Investing: Adventures in Distressed Securities Management

by George Schultze

A detailed look at the discipline of modern distressed investingInvesting in distressed securities/financially troubled credits is an approach that contains both great risk and opportunity. Occurrences from the recent credit crisis have changed this playing field immensely, not so much in terms of actual laws being revised but in the government's larger role. What are the repercussions of the crisis and its bailouts on lending to financially troubled companies? Do the same approaches that have been used for over sixty years still hold true or have some of the rules changed? "The Art of Vulture Investing" will answer these, and many other, important questions.

An expert in the field distressed investing, author George Schultze understands the risks and opportunities of investing in financially troubled companies, especially in the wake of a shaken credit industry and sizeable government bailouts. Now, in "The Art of Vulture Investing," he shares his extensive insights and expertise with you. Throughout this book, he skillfully discusses distressed security investing theory and strategy, while presenting current examples in order to reveal how the landscape has changed in recent years.Offers valuable information on post-financial crisis distressed security investingExamines the opportunities and dilemmas of the modern portfolio manager who invests in distressed securitiesIncludes in-depth case studies of Chrysler and Tropicana

If you're looking to enhance your understanding of the distressed investing discipline, this book is the best place to start.

Genres: Business, Finance

224 pages, Hardcover

First published January 1, 2012

Reviews

[Mihai Pop · Rating 3 out of 5]

A fair start for research on vulture investing, a good mindset to learn about, but very little actionable parts.

[Adam · Rating 4 out of 5]

By the way George's brain ticks it's clear he's rich. I didn't want the book to end.

Highlights my 👂 picked up on ⤵️

I feed off of decay
capitalism has created more economic growth and well being in the last 200 years then all the economic activity in all the history of humanity combined
George Schultz
vulture investing is creating opportunities for sick companies to survive
he's a professional assassin
vultures are actually environmental good guys that get rid of toxic waste
the world would be a terrible mess without them
people got more and more creative in their desperate search for yield
Alan Greenspan lowered rates so low that fixed income investors began getting too creative with leveraged mortgage pools junk bonds derivatives and even government debt
lehman enron worlcon dynagey mf global bankrupcies
excess cash is a bittersweet dilema it's hard to find bargains anywhere
i can hardly believe the audacity of these moves
it's Monday reality hit me like a baseball bat
no one avoids the occasional setback
hopelessly unsolvent
new equity real estate
your too far out of the money
Pontificating: express one's opinions in a way considered annoyingly pompous and dogmatic.
"he was pontificating about art and history"
loan to own debtor in possession
you are buying the company on the day you fund the loan
on the whole I prefer more liquid investments whenever possible even so if the potential reward of going into an even less liquid private equity
saleable scrap
what's the best way for a vulture to succeed?
you are a junior out of the money Bond
distressed companies have always been distressed for a reason
a good carcass is hard to find
80% of the effects come from 20% of the causes
the best analysts are the least egocentric
The less vultures settled on the carcass the more food left for us
for a vulture it pays to circle patiently waiting for the right moment to swoop in
you have to pay interest if you short bonds
you've done a rotten job of paying your rent
yield hungry
Federal Mogul had asbestos liabilities
along with Owens Corning

[Kaizer Makakole · Rating 5 out of 5]

The art of vulture investing has been an inspirational book for me to write a book my called “Bear Market trading strategy: A definitive guide to trading destressed securities”. The book is written in composition form giving the accounts of financial encounters and occurrences to prove the distressed securities investing as an alternative investment strategy. George Schultze and Janet Lewis give the account of the events that occurred during the 2008 financial crisis, the account of Lehman Brothers, Merrill Lynch, AIG, Chrysler and General motors whom filed for bankruptcy during the period.

[Mark Kasson · Rating 4 out of 5]

This doesn't dethrone my all time favorite, The Vulture Investors by Hillary Rosenberg, but this is quite enjoyable. About 1/3 of the book is taken up with Exhibits that don't significantly add to the story. I doubt they'd be a reference to an activist, because if you were engaging in this field at any size, you'd have your own experienced counsel or colleagues. Not very technical to a practitioner.

[Yuni Amir · Rating 5 out of 5]

Happy hunting!

Full with important lessons in distressed and special situations investing albeit US-centric (the legal system is more matured relative to EMs).