Definition of Vulture Funds

The concept of Vulture funds has a use excluding in the financial and investments since with him it is called tothat investment fund that is especially dedicated to buying debt or debt securities belonging to companies or nations that are on the verge of bankruptcy. That is, they are in a very bad economic state, and then, when appropriate, attack judicially against the company or the state in question, requesting that that title or bond be paid in a hundred percent.
Let's think that they acquire it in a much lower percentage as a consequence of the state critical what does that company face or nation with which the profits that they obtain later are exorbitant.

It is worth mentioning that the name of the vulture fund is pejorative but it is the most popular and common use to name them. And obviously it has a symbolic use, since vultures are precisely birds that prowl their prey with cunning and patience, when they least expect it to attack and eat them. And of course, these hedge funds do something similar with the companies and states from which they acquire their debts. They hang around them and wait until they appreciate which is a good time to get more profit on that purchased bond.

We should also mention that they are often called holdouts.

These days it is in the Argentinian republic where the concept has an almost daily use and mention as a consequence that this state is going through a hard litigation with several of these funds.

When Argentina fell into default or default back in 2001, at the behest of one of the worst crisis that it had to suffer in its history, some vulture funds bought debt securities at prices really low. Meanwhile, when a few years later the government Argentina carried out the debt restructuring, these same funds, and as is their usual practice, decided to keep up margin of the negotiation that the state had with other bondholders and then take legal action to achieve the same payment as those bondholders who accepted the debt swap.

Recently, the judge hearing the case, Thomas griesa, ruled in favor of the Argentine state paying the vulture funds the same as it has to pay to those debt holders who accepted the restructuring.
At the moment, the Argentine government has refused to accept such a ruling, considering it unfair and outside the law and therefore the country was declared by the organisms countries in default or cessation of payments, certainly affecting their finance and the economic look of the outside.

Themes in Vulture Wallpapers