From CNBC: In the past two decades, a group of specialized hedge funds
have transformed corporate bankruptcies, injecting much-needed capital while at
the same time drawing fire as "vultures." Now these same funds may be poised to descend
on another landscape: struggling cities and counties - and no place beckons
more than Detroit .
With $8.6 billion in long-term debt, Detroit would be comparable to the biggest
corporate failures if it eventually files for bankruptcy, a major advantage for
big hedge funds that are used to investing hundreds of millions of dollars at a
time. The sheer size of Detroit 's debt should make it easier for the
funds to track down very large chunks of bonds, magnifying their profit
potential, cutting their research and advisory costs and giving them leverage
when it comes to restructuring talks.....
Read all about it at http://www.cnbc.com/id/100718566
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