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Distressed-debt power players; Facebook rethinks real estate


Cliff Asness

Welcome to Wall Street Insider, where we take you behind the scenes of the finance team’s biggest scoops and deep dives from the past week.

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Car-rental giant Hertz filed for bankruptcy protection on Friday evening after it was unable to reach an agreement with its biggest lenders, adding to a wave of bankruptcy filings in recent weeks as companies struggle with an unprecedented hit from the coronavirus pandemic.

Distressed-credit trading at Wall Street banks had been a small, quiet corner of the market over the past decade. But as the economic fallout spreads, more opportunities and flow are likely to come the way of the desks that make markets in bonds and loans trading at discounted prices, bankruptcy claims, litigation events, and other more complex and special situations.

Alex Morrell and Dakin Campbell spoke with nearly a dozen industry insiders — buy-side traders and portfolio managers, current and former sell-side credit execs, and headhunters and consultants — to map out Wall Street’s most powerful and noteworthy distressed-debt traders.

Read the full story here:

Meet 11 Wall Street stars trading busted bonds, bankruptcy claims, and other fire-sale securities

The pandemic has also prompted a surge in e-commerce and forced a re-think of how companies use and occupy office space. A pair of stories from Dan Geiger this week took a look at how those forces are already reshaping real-estate markets.

Facebook CEO Mark Zuckerberg revealed on Thursday that the tech giant is eyeing offices in cities like Dallas, Atlanta, and Denver to act as “hubs” to support 50% of its workers staying remote — and it’s a move that could upend Silicon Valley and NYC real estate. Meanwhile, warehouse properties are suddenly red-hot, with Amazon snapping up space while ailing companies are looking to sell. Here’s a look at key deals and market forecasts that lay out a huge opportunity for industrial real-estate.

Keep reading for a look at where investors draw the line when it comes to hedge fund social-media spats, the story behind pandemic bonds, and a push to pitch SPACs to family offices and super-wealthy people.

Have a great long weekend!

Meredith

Hedge fund Twitter spats

As social media has become ubiquitous over recent years and the pandemic now has forced everyone to stay at home and logged on at all hours, hedge-fund investors have added online activity to their due diligence checklist.

Bradley Saacks took a look at what allocators make of high-profile social media spats — and what online behavior can cross the line and cause them to rethink investments.

Read the full story here:

When big-name hedge-fund managers like Cliff Asness feud with the Twitter masses, major investors notice. Here are the behaviors that could cost them billions.
Pandemic bonds

Investors are clamoring for “pandemic bonds” linked to the coronavirus recovery effort, and Alex Morrell took a look at how Wall Street banks are preparing for a deluge of …read more

Source:: Business Insider

      

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