Episode 14 - Jon Winick

Distressed Debt. Debt buying is a multi-billion dollar industry that operates largely under the radar. Phil has Jon Winick of Clark Street Capital come on to discuss the business side of debt purchases and sales, the industry, and how it all works. As it turns out, all banks sell loans. There are professional loan buying companies, private equity groups, and individual investors, out there that purchase loans to restructure (i.e. workout) loans and enforce delinquent debt. Jon talks about the process and costs of loan management, the reasons for selling loans, the purchasers in the market, and the opportunities available for loan purchasers. Jon also gets into the 2008 downturn, the consequences on the banking industry, and how that changed the loan sale industry. Clark Street Capital puts debt sellers and buyers together and creates a market for these transactions. Their primary business is value management and sale of complex loan portfolios by selling loans and valuing loans. Learn More about Clark Street Capital here. Link to FTC report (The Structures and Practices of Distressed Debt Buying Industry) mentioned on podcast can be found here.