Vulture fund

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Vulture fund

A fund that buys distressed debt of commercial companies or sovereign nations at a cheap price and then often sues them for the entire value of the debt. The resemblance to vultures is because these funds profit from the debt of failing companies or poor nations.

Vulture Fund

A mutual fund that invests predominately or exclusively in high risk stock and high-yield debt. That is, a vulture fund invests in companies that are in or near bankruptcy. The idea behind a vulture fund is to buy securities at low prices and to earn an extraordinarily high return, even if it forces a company to do things against its best interest. For example, some vulture funds may force a company to repay debt when the company would be better served by declaring bankruptcy and not paying. As a result, the term is somewhat derogatory. See also: Vulture Capitalist.

vulture fund

A pool of investment money used to purchase distressed financial assets or real estate at bargain prices. Vulture funds are relatively risky but offer large potential profits. The performance of a vulture fund is dependent upon the skill of the fund's managers in identifying and purchasing undervalued assets that can be turned into profitable investments.

Vulture fund.

Like the scavenging bird of prey that lends its name to the fund, a vulture fund seeks out depressed or endangered investments.

Many vulture funds focus on real estate, but others invest in bonds that have been downgraded or are in default and other high-risk securities.

The strategy behind vulture investing is that such troubled securities have the potential to provide a large return eventually, in spite of their current vulnerable position. Most vulture funds are limited partnerships, but some are retail mutual funds that are open to individual investors.

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bellows Mr Webb, alluding to the recent efforts of vulture funds like Guinness Peat, Advance Value Realisation and JO Hambro.
In the case of Argentina, another US court allowed a small minority of so-called vulture funds to jeopardize a restructuring process to which 92.
Argentina's Minister of Foreign Affairs Hector Timerman, told the General Assembly that "sovereign debt, gentlemen, is a right that countries possess to restructure it, and it is a way to place limits to the twenty-first century pirates which are, no less, the vulture funds which under a lack of global legislation have taken advantage of the poverty of many of the nations represented here.
While the Finance Minister has all but snubbed advocacy groups representing indebted mortgage holders facing losing their home, he has rolled out the red carpet for the vulture funds who might buy up their loans.
Within that recognition, the firm was considered a "Standout" for its Litigation practice because it "leveled the playing field by stamping out the practice of vulture funds targeting indebted African countries.
American Airlines never retracted its statement, and the opposition press, in alliance with the vulture funds, continues to say, "There are no dollars for airlines companies.
Later on Friday, however, Argentina's economy ministry issued a statement accusing Griesa of "clear partiality in favor of the vulture funds.
This default goes back to 2001 when the previous default on government bonds led to a settlement, under which, 93 per cent of the creditors accepted new and less favourable terms, but a holdout group of vulture funds based in the US refused to go along with the plan.
Mantega said he believed negotiations could still continue between Argentina and the so-called vulture funds that triggered the technical default.
This is a cooked up deal among friendly parties that support the vulture funds, with no support from other creditors, and with total disregard for Nortel's former Canadian employees who were the primary creators of the bulk of Nortel's patents which powered the once global company.
At the June IMF meeting, they are likely to request certain reforms relating to sovereign debt, such as limiting the role of predatory vulture funds.
Vulture funds are those that invest in debt-laden companies on the brink of default.