Profiting from financial distress?

amcluesent

Where do peeps see opportunities for profit as a result of corporate and personal financial distress.

We have the bond from London Scottish Bank which doesn't have enough capital to satisfy the regulator.

What else? Is there money in pawnbrokers, debt collectors or funds to buy distressed BTL out at fire-sale prices?

Mikeyorks

Is that a 'Happy New Year'?

SilverScooby

Good question - one hedge fund made 1000% profit last year betting against the institutions which held sub-prime instruments. Making money out of distressed city fat cats sounds good to me!

Next thing according to the fund manager who made 1000% is:

"In his letter, Mr Lahde said he expected the collapse in value of subprime mortgage-linked securities to be repeated for bonds backed by commercial property loans in a deep recession – which he also predicts."

Not sure where us retail investors can invest in this sort of thing though

Jonbvn

Some private equity boys in NY made serious money (billions) by shorting on sub-prime mortgage debt.

missile

You could consider TEPs see http://www.moneyextra.com/guides/traded-endowment-policies-011460.html