Money Flowing Into Distressed Investing

Summary


NEW YORK (HedgeWorld.com) - Large numbers of hedge funds and other managers are raising new distressed investment vehicles and moving portfolio allocations into this area, according to a survey by Debtwire. Almost all respondents said they expect company defaults to increase but are divided on how high the default rate will go.

More than $600 billion in capital is available for investing in distressed situations, according to Mick Solimene, managing director at Macquarie Securities (USA) Inc., an offshoot of the Australian bank.

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Money Flowing Into Distressed Investing

U.S. private equity firms alone have raised more than $48 billion in 2007, up threefold from 2006. Mr. Solimene said capital is flowing out o...

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