Research from Professor Edward Altman on the recovery rates of defaulted debt is cited
— April 30, 2020
Excerpt from Seeking Alpha -- "Edward Altman is best known for inventing the Z-Score, but he also did the earliest research into the recovery rates of defaulted debt. His research, and that of the rating agencies, has shown that on average, senior secured bank debt recovers 70 cents on the dollar, senior unsecured bonds recover 40%, and junior unsecured bonds, which rank higher than preferred shares, recover 15%. Crucially, the 15% recovery rate for junior subordinated bonds, is the mean rate."