Know What You Don’t Know: The Unique Challenges of Community Bank Distressed Debt Portfolios
February 11, 2011 — With the worst days of the downturn seemingly behind us, investors, lenders and principals are starting to pick up the pieces. It may very well be a good time to invest, with a large number of troubled loan portfolios from community banks likely to come on the market. But these opportunities do not come without risk. They require a careful, nuanced and strategic approach – standard underwriting and valuation alone will just not tell you what you need to know.