Vultures aside, bankruptcy boom a boon; With stocks suffering, creditor claims gain
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In light of hundreds of corporate bankruptcy filings during the past two years, a burgeoning market is developing involving unpaid creditor claims. While experts caution to watch out for “vultures” who prey on companies holding unpaid invoices, the role of bankruptcy in the business cycle is evolving, says David Epstein, a resident scholar with the American Bankruptcy Institute in Alexandria, Va. “The new mindset is that there are investment opportunities,” he says. “Trading claims is a big part of bankruptcy today.” It’s been steadily growing over the past 15 years, Mr. Epstein notes. A large number of investors has moved into the distressed market recently, partly because of the Source : accessmylibrary.com |