Thought Leadership

We summarise all the findings of our articles on distress risk First, financial distress can be predicted by looking at a relatively...

We investigate whether investing in stocks that are close to default generates a premium Hundreds of firms are going bust these days....

We discuss the optimal timing of a strategy that invests in firms that are close to bankruptcy In a previous post, we provided evidence...

We investigate whether distressed stocks carry a premium after controlling for the exposure of the portfolio to common factors, such as...

We investigate the existence of a distress premium, controlling for common factors such as market beta, size and value, around the world....

We investigate whether the systematic component of distress risk carries a premium Asset pricing theory states that those who bear...

Are distressed stocks more likely to generate returns above 100%? We have done a series of posts on the returns of distress stocks. We...