Debt from a company or borrower that is trading far below its original value because the borrower is having serious financial trouble or may default. Investors care because it can be bought cheaply and offer large gains if the borrower recovers or the debt is reworked, but it also carries a high chance of loss — like buying a damaged house at a steep discount hoping repairs will raise its value.
Special assets are holdings a company or bank separates from its regular portfolio because they’re unusual, hard to value, or need extra work — for example damaged property, loans in default, unique investments or items pending legal or regulatory resolution. They matter to investors because these items can hide extra risk or one-time gains, affecting a firm’s true financial health and future cash flow much like a garage of broken goods that could either be costly to fix or valuable once repaired.
distressed assetsfinancial
Distressed assets are investments—such as loans, bonds, real estate or whole companies—whose value has dropped because the owner can’t meet financial or legal obligations, operations are failing, or there are large liabilities. They matter to investors because they can be bought at substantial discounts like a foreclosed house sold below market, offering the chance of outsized returns if recovered, but they carry higher risk, legal complexity and longer timelines to realize value.
trade and insurance claimsfinancial
Trade and insurance claims are demands for payment or compensation arising from business dealings or from losses covered by insurance. Trade claims come from disputes over contracts, deliveries, invoices or service performance between companies and their customers or suppliers; insurance claims are requests for policy payouts after damage, loss or liability. Investors care because sizeable or uncertain claims can reduce cash, create legal liabilities, and signal operational or compliance problems—similar to unexpected repair bills that cut into a household’s budget.
reorganized equityfinancial
Reorganized equity is the ownership stake that exists after a company restructures its capital—often following a bankruptcy, merger, or recapitalization—when old shares are canceled, exchanged, or replaced and new shares are issued. It matters to investors because it determines who owns the company and how much each claim is worth going forward; think of it as reshuffling slices of a pie, which can change every holder’s percentage, voting power, and potential upside or loss.
defaultfinancial
When a borrower fails to meet a legal obligation on a debt—most commonly missing scheduled interest or principal payments—it's called a default. For investors, default signals higher credit risk and can lead to loss of expected returns, forced restructuring or legal claims on assets; like a tenant suddenly not paying rent, it can disrupt cash flow and reduce the value of loans or bonds held by outsiders.
bankruptcyregulatory
A legal process a company uses when it cannot pay its debts, where a court oversees either a reorganization to try to keep the business running while repaying creditors or a liquidation that sells assets to pay bills. Think of it like pressing pause to sort unpaid bills or closing a store and selling its fixtures; for investors it often means equity can be wiped out or heavily diluted and creditors get priority on any recovery.
Industry veterans John Mori and Eric Friel to lead new group
NEW YORK--(BUSINESS WIRE)--
Piper Sandler Companies (NYSE: PIPR), a leading investment bank, is pleased to announce the additions of John Mori and Eric Friel as managing directors to lead a new group that will focus on distressed debt and special assets. Mori will be based in Greenwich and Friel will be in New York, both reporting to Michael Piper, head of fixed income at Piper Sandler.
The distressed debt and special asset group will source and trade specialized credit products, including distressed assets, trade and insurance claims, reorganized equity and other securities issued by companies facing financial stress, including default or bankruptcy. Additional new hires will be announced in the coming weeks and months. The group will also work in partnership with the firm's investment banking, capital markets and restructuring teams.
“We are excited to welcome John and Eric to our fixed income team. Their strong relationships and deep understanding of special assets and distressed credit introduce a highly complementary capability to our platform. This expansion represents a significant value-add, allowing us to offer clients access to unique investment opportunities we haven't previously covered,” said Michael Piper.
“Current market volatility and regulatory shifts are creating dislocation in the distressed space. With John and Eric leading this new group, we are well-positioned to help investors navigate these turbulent markets. We expect this team to add tremendous value as we broaden our product depth with a wide cross section of institutional clients,” said Chris O’Brien, head of credit trading at Piper Sandler.
“We are thrilled to bring our expertise to an industry-leading platform like Piper Sandler. The firm’s deeply ingrained client-first culture is what ultimately drew us here. We are looking forward to leveraging the strength of the broader Piper Sandler network to provide institutional investors with unique, actionable opportunities in the distressed debt space,” said Mori.
Mori and Friel join the firm from Oppenheimer & Co., where Mori was co-head of distressed debt and Friel was head of high-yield and distressed research. They previously worked for Cowen and Company. Mori received a bachelor’s degree from Providence College. Friel received a bachelor’s degree from Virginia Tech and holds a Master of Business Administration degree from the Olin Business School at Washington University in St. Louis.
ABOUT PIPER SANDLER
Piper Sandler Companies (NYSE: PIPR) is a leading investment bank driven to help clients Realize the Power of Partnership®. Securities brokerage and investment banking services are offered in the U.S. through Piper Sandler & Co., member SIPC and NYSE; in the U.K. through Piper Sandler Ltd., authorized and regulated by the U.K. Financial Conduct Authority; in the EU through Aviditi Capital Advisors Europe GmbH, a tied agent of AHP Capital Management GmbH, authorized and regulated by BaFin; in the Abu Dhabi Global Market through Piper Sandler MENA Ltd., authorized and regulated by the ADGM Financial Services Regulatory Authority. Alternative asset management and fixed income advisory services are offered through separately registered advisory affiliates.
