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

An Interview With Harvest Volatility Management's Rick Selvala

Mar 23 2017 | 5:39pm ET

Several years of extremely low interest rates have pushed some investors into equities...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...

 

From the current issue of