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Judi Lynn

(160,214 posts)
Fri Oct 9, 2015, 11:51 PM Oct 2015

US hedge fund threatens Peru with law suit over debt

Source: BBC News

US hedge fund threatens Peru with law suit over debt
5 hours ago

A US hedge fund has threatened to sue Peru over bonds issued by the country's former military regime.



Connecticut-based hedge fund Gramercy purchased the defaulted debt at a discount in 2008 after other bondholders failed to reach a deal. Peru's finance minister said the government would oppose any legal action outside its borders.

Purchasing defaulted bonds on the cheap to make a profit in a settlement is a common hedge fund tactic.

The South American country defaulted on the $5.1bn (£3.33bn) in bonds in the 1980s.


Read more: http://www.bbc.com/news/business-34492745

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US hedge fund threatens Peru with law suit over debt (Original Post) Judi Lynn Oct 2015 OP
I honestly have zero sympathy for the hedge fund because cstanleytech Oct 2015 #1
Meanwhile here in the USA hedge funds take peoples houses over airplaneman Oct 2015 #2
Hedge funds, aka "vulture" funds: engines for transfer of wealth to 1 percenters. Divernan Oct 2015 #3
Hang tough, Peru. Fuck 'em. cheapdate Oct 2015 #4
By any chance was the military regime supported by the jwirr Oct 2015 #5

cstanleytech

(26,080 posts)
1. I honestly have zero sympathy for the hedge fund because
Fri Oct 9, 2015, 11:59 PM
Oct 2015

they clearly knew the risks of buying these bonds and are just trying to exploit them.

airplaneman

(1,236 posts)
2. Meanwhile here in the USA hedge funds take peoples houses over
Sat Oct 10, 2015, 12:06 AM
Oct 2015

$250 utility default purchases at discount from the city of Baltimore.

Link in case you have not read about this.

http://thinkprogress.org/economy/2015/08/27/3695753/how-hedge-funds-are-exploiting-baltimores-poorest-residents/

Maybe Peru can just ignore them but Americans here are surely screwed.

-Airplane

Divernan

(15,480 posts)
3. Hedge funds, aka "vulture" funds: engines for transfer of wealth to 1 percenters.
Sat Oct 10, 2015, 12:48 AM
Oct 2015

Scum of the earth, as far as I'm concerned. And that includes hedge funds, Eaglevale Partners, owned by HRC's son-in-law, Marc Mezvinsky and Avenue Capitol Group, for which Chelsea Clinton once worked.

London - They have fought long-running legal battles with Argentina, Peru and Zambia, and now want Puerto Rico to sack teachers and close down schools to pay back debt. It's fair to say that vulture funds are the scourge of impoverished countries, seemingly hell-bent on exploiting economic weakness across the globe.

The ruthless investment vehicles can trace their roots back to the 1990s, when the US hedge fund pioneer Paul Singer began buying up the debt of crippled countries and companies for small sums, before taking them to court to demand 100 per cent repayment of the debt, on top of interest and court costs.

http://www.iol.co.za/business/opinion/a-new-low-for-hedge-funds-1.1893593#.VhiVfW6naDF

A hedge fund co-founded by Bill and Hillary Clinton’s son-in-law Mark Mezvinsky lost investors millions due to unfortunate bets on the Greek economy, the Wall Street Journal reported Tuesday.

Mezvinsky and his two co-founders, all Goldman Sachs alums, wrote to investors in their Eaglevale Partners LP that they were “incorrect” in their predictions about the Greek economy. These predictions led the fund to decrease by 3.6 percent last year, while similar hedge funds gained during a period of American economic growth.

After the leftist party Syriza party triumphed in Greek elections last week and Alexis Tspiras became prime minister, the fund’s founders, including Mezvinsky, sent out a message lamenting their incorrect predictions. “We are reticent to render decisive predictions at this time,” the three added.

One Eaglevale fund of around $15 million solely emphasized investments in Greece and lost 48 percent of its value last year, according to the Journal.


Read more: http://www.politico.com/story/2015/02/chelsea-clinton-mark-mezvinsky-hedge-fund-loss-114880#ixzz3o8XmREOE

Clinton, 26, the only child of former President Bill Clinton and U.S. Sen. Hillary Rodham Clinton, has taken a post at the New York-based fund manager in an undisclosed capacity, the source said.

Clinton, who graduated from Stanford University in 2001 and studied philosophy at Oxford University, most recently worked at consultants McKinsey & Co. from 2003.

Avenue which focuses on distressed securities investing was co-founded by Marc Lasry. Morgan Stanley this week bought a minority stake in Avenue.

http://www.nbcnews.com/id/15549672/ns/business-us_business/t/chelsea-clinton-joins-new-york-hedge-fund/#.VhiXX26naDE


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