Konstantinos E. Zachariadis

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    Hedge funds are heavily involved in the distressed debt market

Hedge funds are heavily involved in the distressed debt market

Securities and Exchange Commission, by Scott S, under a CC-BY-2.0 licence
Debt restructurings (or loan amendments) can prove disruptive for a firm’s operations and have real effects on production and investment. Done successfully, restructurings help realize firm value, while failure to do so is detrimental to the firm and some — if not all — of its claimholders.

The effect of trading […]

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    Some mutual funds do business with firms whose shares they own

Some mutual funds do business with firms whose shares they own

Major decisions in public corporations are subject to a democratic process: Proposals for change are presented at annual general meetings (AGMs), company managers indicate their preferred outcome, and shareholders then vote. Mutual funds have significant voting power by virtue of their extensive shareholdings. They also often have business ties with firms held in their portfolios because they manage company […]