Hedge Fund-Backed Film Financing Gets Junk Rating

Oct 30 2008 | 11:59am ET

The latest Hollywood box-office bomb won’t be shown on the silver screen, but may appear as another red line in a hedge fund’s earnings statement.

Paramount Pictures’ Melrose I financing, back in large part by hedge funds, has been downgraded to junk by Moody’s Investor Service, according to Hollywood Reporter. The bonds have seen their ratings fall by six grades, from investment grade Baa2 to junk grade B3.

The ratings downgrade indicates that Moody’s think Melrose’s senior debt holders are in trouble, leaving hedge fund investors in serious danger of big losses.

Melrose I is backed by 26 Paramount films released between 2004 and 2005.

In Depth

The Importance of Stability in the Evolving Hedge Fund Administration Market

Oct 5 2015 | 8:17pm ET

Hedge fund administration has evolved from simple record keeping to an integral,...


Citadel's Griffin Reaches Settlement in Contentious Divorce

Oct 8 2015 | 10:14pm ET

Billionaire hedge fund manager Ken Griffin and his wife have settled a long-running...

Guest Contributor

Hedge Fund Marketing To Independent RIA Firms

Sep 30 2015 | 1:56pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth Inc. explains...


Editor's Note