Download or read book Recovery Rates From Distressed Debt written by Mr.Manmohan Singh and published by International Monetary Fund. This book was released on 2003-08-01 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: On a credit rating-adjusted basis, spreads on U.S. high-yield debt have typically been regarded as a lower bound for emerging market debt. However in the C-rated and defaulted segment, emerging market debt has traded at lower spreads than similarly rated U.S. high yield debt. We show that the lower spreads reflect the fact that the total returns from defaulted debt in the emerging markets have been significantly higher than returns from similarly rated high yield defaulted debt under Chapter 11.