Distressed Loan & High Yield Debt Trading


Cost for BPP PD Members: £980 + VAT 12 CPD Hours
(£1230.00 + VAT for non BPP PD Members Click Here for details of our membership scheme).

Course level



The course will be of benefit to bankers (including agency, middle and back office and compliance staff), distressed traders and their support staff, portfolio managers, institutional investors, lawyers, accountants and other market professionals and advisors who are dealing with corporate loans, bonds or other instruments in distress or actual default.

Course Content

This two day course will provide a practical and comprehensive insight into the distressed debt market together with an appreciation of the options, risks and potential rewards in the distressed debt sphere whether from the viewpoint of a holder, trader or investor in this specialised segment of the market. The learning process will be reinforced through the use of workshops and case studies.

Learning outcomes include:

  • Developments in the distressed debt markets
  • -Characteristics of the markets

    -How and why we're reached this point

  • Classes of debt and their implications
  • -Appreciation of where you sit in the debt structure

    -Understanding leveraged and complex debt structures

    -Cross border issues

    -Multiple debt facilities

  • Documentation review – why its crucial
  • -Covenants, representations and warranties, and undertakings

    -Information rights for different classes of creditors

    -Guarantees and security – perfection and enforcement

    -Bankrupt remote vehicles – how effective in practice?

    -Understanding events of default, cross default and cross acceleration

    -Implications of acceleration

  • Intercreditor Agreements – what they achieve
  • -Structures and key terms

    -Waterfall of funds

    -Senior/subordinated issues

    -Treatment of hedging instruments

    -Permitted payments

    -Drag along rights

  • Debt moratoriums
  • -Roles

    -INSOL principles


  • Players in the market and their strategies
  • -The driving issues

    -Dynamics for differing lenders and creditors

    -Management action – co-operation or frustration?

    -Public-side investors

    -External regulatory and political influences

    -Sponsors and debt buy-backs

  • Pricing and trading of debt (loans and bonds)
  • -Pricing considerations for:

    >Trading of distressed loans

    >Trading of bonds

    >Mechanisms of a distressed loan trade

"A CPD certificate of completion will be provided by BPP Professional Education Limited upon request, following attendance."

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