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LIRA@BC Law

Abstract

Since the 1990s, “vulture” hedge funds have made fabulous returns by pursuing a controversial strategy: buying bonds issued by countries in or near default and then suing those countries for full repayment. Vulture funds’ investments have resulted in chaotic, drawn-out default episodes and an enormous redistribution of wealth from developing countries to billionaire investors. Despite the real benefits vultures provide to the secondary market for sovereign debt, something must be done to dull their talons. Lamentably, however, no viable solution currently exists. This Note argues that a nonprofit fund designed to compete with vultures could at least mitigate harm to developing nations during the next wave of defaults.

Files

File nameDate UploadedVisibilityFile size
04_brutti_web_A1b.pdf
6 Sep 2022
Public
856 kB

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Metadata

  • Subject
    • Banking and Finance Law

    • Bankruptcy Law

    • Law and Economics

    • Nonprofit Organizations Law

  • Journal title
    • Boston College Law Review

  • Volume
    • 61

  • Issue
    • 5

  • Pagination
    • 1819

  • Date submitted

    6 September 2022