The length of re s t ructuring is hard to forecast. Prices for distressed securities are
typically volatile and illiquid. There are legal risks. For example, re g u l a t o r s
may prohibit the selling of a company’s stock during the re s t ru c t u r i n g .
I n t e rest rate fluctuations will also have an impact on re t u rns. Some hedge
funds may hedge this risk using interest rate future s .