Sunday, 29 November 2015
Last updated 1 day ago
Jan 18 2012 | 11:53am ET
A group of hedge funds and the Greek government may be on a collision course if talks between the deeply indebted country and its creditors do not produce an agreement this week.
Five hedge funds, which together own a chunk of the estimated $260 billion in Greek bonds held by creditors, have balked at taking more than a 50% haircut on those holdings. And Greek Prime Minister Lucas Papademos has threatened to force them to accept the losses by law if a deal cannot be reached. Without a deal, Greece could default on its debt as soon as March, with potentially catastrophic consequences for the global economy.
The hedge funds, GreyLock Asset Management, Marathon Asset Management, Och-Ziff Capital Management, Vega Asset Management and York Capital Management, snapped up the debt at distressed prices and want a guaranteed profit on the investments. The International Monetary Fund and Germany, the biggest contributors to Greece's bailout fund, want an annual coupon of 2% for new bonds, which would slash the value of those bonds by up to 75%. The hedge funds have refused to countenance a loss of more than 50%.
Charles Dallara, who represents private bondholders, is in Athens for talks after the IMF, European Central Bank, European Union and Greece convinced him that there was a significant chance at a deal.
If there isn't a deal, Papademos said he is prepared to declare war: Without 100% participation, he said, he'll pass legislation forcing holdouts to take the losses.
Oct 21 2015 | 10:41am ET
One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…