Sunday, 28 December 2014
Last updated 1 hour 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.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.