Retrospective Analysis of a Default
While the 2007-2009 financial crisis pushed many corporate borrowers and debt issues over the edge, this was only the most recent iteration of failures caused by both borrower-specific, industry-related and macro-economy related failures. For this assignment, you will identify a particular situation in which there was default on a substantial volume of fixed income securities. Since this is a retrospective analysis of the debt failure — it already happened — there should be plenty of source material — news, reports, financial statements, even bankruptcy filings, etc. — for your paper to provide the following, among other things:
Identify the borrower & the debt that fell into default.
Discuss the reasons for the default.
Was it because of circumstances unique to the borrower?
Was it Industry practices that placed the whole industry at risk?
Was it general economic factors? (or more likely a combination of all 3).
How the default was addressed. Did the borrower go through bankruptcy? Was it liquidated or restructured? What factors drove this outcome?
What was the fate of the debt holders? How much were they able to recover and in what form — cash, new debt securities, equity in a restructured firm?
Nothing formal, just a brief one or two paragraph descriiption of the topic.