I’ve been involved in the distressed investments industry ever since I started my employment. I was lucky being hired by an asset management firm in charge of due diligence of huge distressed debts and assets of the acquiring vulture fund investor. It was stressful and at the same time exciting career opportunity.

According to the latest study of debtwire on distressed debt outlook for North America and Europe for 2009, a lot of investors is waiting until the second quarter of 2009 to start to ramp their investments in distressed debts. With that said, 33% of respondents on the survey believe that first quarter 2009 is the right time to begin to make purchases since the bulk of new administration’s economic stimulus plan is expected to be hammered out throughout the quarter.

Philip Van Winkle, Managing Director of Macquarie Capital (USA) Inc. said that distressed is a huge opportunity today. No one can time the bottom nor do they have to, being prepared now and getting involved anywhere near the bottom should result in very attractive returns for knowledgeable investors.

The Financial Services sector will still be the industry that offers the greatest opportunities for distressed investors this year 2009 for North America while Property and Construction industry will be the top opportunity for Europe with UK and Germany as the top countries.

Overall, there is an expected huge percentage increase in distressed mergers and acquisitions transactions but respondents said they will be having difficulty in finding financing to buy those distressed assets since there is a significant decrease in liquidity in the system.

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