Happy Birthday Chelsea Clinton!

[stevenleser]

62. Do you actually think what you bolded makes Chelsea 'bad'?

What you have done is combined two bogeyman terms "hedge fund" and "Distressed debt and securities" in the hopes that people who don't know any better will think that this necessarily makes Chelsea 'bad'.

You might as well accuse someone of "going to work" and suggest that this makes someone bad. It doesnt. You need a lot more details.

http://en.wikipedia.org/wiki/Distressed_securities

Distressed securities (also known as distressed-debt) are securities or bonds of companies or government entities that are either already in default, under bankruptcy protection, or in distress and heading toward such a condition. Purchasing or holding such distressed-debt represent significant risk since bankruptcy may render such securities worthless (zero recovery).[1] They therefore tend to trade at significant discount to their intrinsic value.

Some investors have deliberately used distressed-debt as an alternative investment where they buy the debt at deep discount and aim to realise a high return if the company or country does not go bankrupt or defaults. The major buyers of distressed securities are typically large institutional investors, who have access to sophisticated risk management resources, such as hedge funds and private equity firms and units of investment banks.[1][2] Firms that specialise in investing in distressed debt are often referred to as vulture funds.

Investors in distressed securities often try to influence the process by which the issuer restructures its debt, narrows its focus, or implements a plan to turn around its operations. Investors may also invest new capital into a distressed company in the form of debt or equity.[1] In 2006 distressed debt investments earned well above average returns.[3] and there were more than 170 institutional distressed debt investors. These institutions used "very strong and varied strategies included traditional passive buy-and-hold and arbitrage plays, direct lending to distressed companies, active-control elements, foreign investing, emerging equity purchases and even equity plays while the firms are going through reorganization in bankruptcy."[3] The most common distressed securities are bonds and bank debt.