I can’t find a clear cut distinction between Deep value and Restructuring & Distressed Investing and when I read about Special situations, to me it looks more like restructuring investing because we are focusing on special situations like a merger
How am I supposed to understand when is what in a problem?
Would deep value be companies trading below book value generating returns on invested capital. Restructuring companies have probably breach a covenant - incurrence and maintenence. They can’t pay interest and principal payments. Distressed are probably companies that are rated below Caa1 (or some classification of high credit risk) and below that have paper trading at deep discounts, say 30 cents on the dollar depending on structural and subordination differences.