11. Which of the following statements about distress are true? (Choose ALL the correct statements.)

A. Banks that bought CDS protection from AIG as a way to avoid losses on their loan portfolios found that AIG was unreliable CDS seller during the crisis.

B. The average junk bond spread rose to 10% in 1990 and 2001 but was even higher in 2008 even though all three recession years had similar default rates.

C. Recovery rates on bank loans are generally higher than recovery rates on bonds (for the same company) because bank loans are usually secured and have higher priority.

D. Both bank loans and bonds are restructured out of court via exchange offers and prepacks.