Japan’sDistressedDebtMarketWhyisthereapricemismatch.pptVIP

Japan’s Distressed Debt Market;I. Why do the market bids for NPLs/SPLs matter?;How the market has graduated to SPLs;Where do SPLs come from?;II. Why does a price mismatch exist?;Maturity Default rule is not recognized;The impasse between the main bank and the nonmain bank ;Main bank system;Classification of SPLs –as defined in our paper (roughly in line with official classification);Bank’s view and the collateral option;Values (after the haircut i.e. B/A vary widely but generally in the 60 -80 cents/$ range). This is the bank’s view of their restructured portfolio;III. Equity play: Investor’s