medium · Private Credit & Debt portfolio-management-monitoring-workouts
A distressed debt investor purchases senior unsecured notes trading at 45 cents on the dollar. Their base-case recovery analysis estimates a payout of 70 cents in 12 months.
What is the expected 'Base Case' annualized return on this investment?
- 55.6%
- 25.0%
- 70.0%
- 44.4%
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