The head of money-management firm considers whether to invest in the securities of large financial difficulty, California, life insurance holding company that owns 40% of its assets in high-yield bonds are junk. Over the last year the value of his portfolio has declined considerably, and he is looking great infusion of capital from large (28%) shareholder - a New York investment bank - which is in financial difficulties of their own. Over the last month, the other major California insurance company, which has also invested heavily in junk bonds were captured after the regulators' work on the bank of "interested insurers, the state insurance commissioner and publicly declared his intention to" fight "about abuses in the insurance industry. "Hide
by Stuart C. Gilson, Harry Deangelo, Linda Deangelo Source: Harvard Business School 19 pages. Publication Date: May 17, 1996. Prod. #: 296032-PDF-ENG
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