This category consists of investments in companies whose debt we believe is inexpensive relative to its underlying risk or delivers an attractive return. This may include companies experiencing financial distress or whose credit is viewed as marginal but improving. Investments include non-investment grade debt in leveraged or underperforming companies, as well as companies experiencing a liquidity crisis, defaulting on their debt obligations, filing for bankruptcy protection or undergoing other corporate events. Investments also may be made in anticipation of a strengthening credit, a recapitalization, reorganization, liquidation or a repayment or refinancing. This category comprises mainly debt securities and instruments such as bonds, bank debt, trade or other claims. Farallon may purchase existing securities or instruments on a secondary basis or may purchase newly originated securities or instruments on a primary basis.