What was oaktrees strategy for investing

Reference no: EM133359939

Question: What was Oaktree's strategy for investing in CIT's publicly traded debt? Compute the return on investment for Oaktree if CIT files for bankruptcy now. (Historical recovery rates for senior secured and senior unsecured debt are 80 cents and 45 cents on the dollar, respectively. The five-year default rate for senior secured debt is approximately 3 %. The average purchase price for notes held by Oaktree is 65 cents on the dollar.) What were the risks for this strategy?

Reference no: EM133359939

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