While the 2007-2009 ï¬nancial crisis pushed many borrowers and debt issues over the edge, this was only the more recent iteration of failures caused by both borrower-speciï¬c, industry-related and macro-economy related failures. In the beginning of 2020, we were/are facing the coronavirus COVID-19 crisis â€“ as of the time of this writing, it remains uncertain, unresolved â€“ disruptions in movement and availability of labor in China are starting to cause rippling effects in the global supply chain and the delivery of finished goods to the global markets. Multinational corporations with significant revenue source in the Chinese market will be impacted. This unfolding crisis will certainly threaten global economic growth. For this assignment you will identify a particular situation, either during the 2007-2009 financial crisis or the current COVID-19 crisis, in which there was or will be a default on a substantial volume of ï¬xed income securities. Your paper will, among other things:
- Identify the borrower & the debt that fell into default
- Discuss the reasons for the default. Was it because of circumstances unique to the borrower? Industry practices that placed the whole industry at risk? General economic factors? (or more likely a combination of all 3)
- How the default was addressed. Did the borrower go through bankruptcy? Was it liquidated or restructured? What factors drove this outcome?
- What was the fate of the debtholders? How much were they able to recover and in what form — cash, new debt securities, equity in a restructured firm?
Paper MUST include a bibliography of sources cited. Any direct or indirect quoting or paraphrasing of other material MUST be footnoted. While facts and information will underlie the discussion, the key to this assignment is your analysis and conclusions regarding the topic.
Please write a two paragraph brief description in 24 hours.