Sunday, 21 September 2014
Last updated 1 day ago
Mar 28 2014 | 9:32am ET
Hedge funds' bet on the corpse of Lehman Brothers Holdings is paying off.
The collapsed investment bank's liquidators said yesterday that they'd pay out $17.9 billion more to creditors. The distribution, the fifth since the end of 2011, brings the total returned to creditors to more than $80 billion—$15 billion more than initially expected, amounting to about six extra cents on the dollar.
For the hedge funds that aggressively bought up Lehman claims in the aftermath of its 2008 failure, those six cents are adding up. Paulson & Co. alone had made $1 billion on its Lehman investments through last year, The Wall Street Journal reports.
Others have done well, too: Silver Point Capital invested in bonds issued by Lehman's derivatives business. Those bonds are now expected to recover 30.9% of their value, three cents more than initially expected. Halcyon Asset Management and King Street Capital Management were also major Lehman debt investors.
There could still be more to come. Lehman's bankruptcy liquidation process is expected to take several more years.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.