How is distressed investing in structured products different from distressed investing in other products?
Several aspects of structured products are different. First, analyzing a pool of credit assets requires a multi-faceted approach that is more complex than that taken by a traditional credit analyst. The addition of a structure to a pool of assets further complicates the analysis, creating more risks and opportunities for investors. Furthermore, preparation is a key component of structured credit investing. Due to the uniqueness of the assets and the sizes available, you must be proactive to be reactive when an opportunity comes to market or you may never see that security again.
