Compute the return on investment for oaktree

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What was Oaktree's strategy for investing in CIT's publicly traded debt?I Compute the return on investment for Oaktree if CIT ?les 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 9/0. The average purchase price for notes held by Oaktree is 65 cents on the dollar.) What were the risks for this strategy?

Reference no: EM133121462

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