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

Delayed Flash Crash Arrest Highlights Difficulties Detecting Fraud

Apr 23 2015 | 7:19am ET

The five years it took regulators to bring high-profile charges against a UK trader...

Lifestyle

Puerto Rico Woos The Rich But So Far Gains Little

Apr 17 2015 | 2:45am ET

Hedge fund manager Rob Rill grins. He has just had word that U.S. financial regulators...

Guest Contributor

Opportunities Ahead: Asian Fixed Income and Currency Markets

Apr 24 2015 | 6:18am ET

For hedge funds focusing on Asia, the policy uncertainty, unclear interest rate...

 

Editor's Note