Distressed Players Look to Trade Claims

Laughlin, Kate
December 2005
Investment Dealers' Digest;12/12/2005, Vol. 71 Issue 47, p12
Trade Publication
The article presents comments of the author on the pros and cons of trade claims in comparison to distressed bonds and investments. Trade claims comprises of debts owed by a bankrupt company, particularly to vendors and suppliers. The article reflects on the reasons for the current demand for trade claims. It states that it is a result of many converging factors, including the size and nature of recent bankruptcies, the growth of hedge funds and the trend toward longer hedge-fund lock up periods. The article cautions that the complex and non standardized administrative and legal processes involved in buying trade claims make buying unsecured bonds a riskier business.


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