"Investment banks have specifically been hiring bankers and traders who focus on distressed debt. Morgan Stanley in London has created a team of 40 bankers in the past three years, while Deutsche BankÂ’s London operation now has 130 employees, making it the biggest team in distressed debt.
Many hedge funds are anticipating that rising inflation and interest rates will soon lead to a credit crunch, when the money readily available for loans to companies at low rates will run out. Hedge funds are looking to Europe in search of higher returns because they already dominate distressed debt in America"
The revenge of the nerdd. The accountant as trader. Picking over the balance sheet, valuing the collateral and market swinging around on the basis of the latest court ruling. However, in Europe, it can only add to the talk of locusts and vultures hovering over the body of dead firms.
No comments:
Post a Comment