PE Sponsors Will Not Subordinate Equity to Save Distressed Bondholders
Peter Troob · Peter Troob – Monkey Business in High Yield (Capital Allocators, EP.59) · Jul 2, 2018 · at 22:06
Peter Troob, CIO of Troob Capital Management, explains why private equity sponsors in distressed situations do not rescue bondholders by injecting junior equity.
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“So they will be economic animals. They will look for the best return for the reward of what, for the risk they're taking, and there is no reason why they come in and just subordinate themselves to bonds and save the bond market.”
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