Distressed securities can be defined narrowly as those publicly held and traded debt and equity securities of firms that have defaulted on their debt obligations and/or have filed for protection under Chapter 11 of the . Bankruptcy Code. A more comprehensive definition would include those publicly held debt securities selling at sufficiently discounted prices so as to be yielding, should they not default, a significant premium over comparable duration . Treasury bonds. For this segment, I have chosen a premium of a minimum of 10 percent over comparable . With interest rates falling as much as they have by late-1998, this definition would currently.
