Sentences with phrase «hedges against default»

Not exact matches

(Bloomberg)-- An investment fund that's seeking a payout from the Cuban government on more than $ 1.3 billion in defaulted debt and back interest has hired the lawyer who won a settlement for hedge funds in a long - running legal battle against Argentina.

As the bailout package came through, the probability of a default decreased and therefore those who were long gold as a hedge against a crisis began to unwind their positions.

Traders and investors were concerned over the Greek situation and therefore gold was bought as a safe haven or hedge against the financial turmoil that could follow a Greek default.

Fears over Greece should increase in the coming days, so then the gold prices, as the yellow metal will be bought as a safe haven or a hedge against the financial turmoil that could follow a Greek default.

The eccentrics extolled in the opening scene include Michael Burry (Christian Bale), a Northern California — based MD and money manager who invents the credit default swap in the mid-Aughts, when the film's central action kicks off; Mark Baum (Steve Carell, also hideously coiffed), an obnoxious hedge fund manager whose backstory involving a dead - by - suicide brother somehow positions him as the film's most steadfast moral compass; and Ben Rickert (Brad Pitt), a onetime trader for Chase turned secular eschatologist who advises two young, aspiring operators, Jamie Shipley (Finn Wittrock) and Charlie Geller (John Magaro), how to bet against Wall Street.

By the same token, you can not default on the bond, as that would not be fair to bondholders, many of whom buy school bonds as a hedge against inflation and for their retirement.

Therefore they will charge you higher interest rates to get more money out of you, and give them a hedge against the possibility of you defaulting on your mortgage.

The bank typically wants the mortgage debtor to have a significant interest in the house; that's a deterrent to default (the homeowner loses bookoo bux in equity) as well as a hedge against it (yes, the bank can repo the property, sell it, and get their money back).

Finally, with a large basket of debt types, you hedge against one debt defaulting.

To reduce the indirect effects of such receivership on other institutions, it would be helpful to legislate a restriction on the use of credit default swaps (essentially insurance contracts against the failure of a company's bonds), requiring that such swaps may be used for bona - fide hedging purposes only.

As you would imagine, this is a recipe for disaster - which is pretty much what's been going on since hedge funds have mutated from their original purpose (to hedge against down markets), and have proliferated to the point of being the world - eating monsters of today (credit default swaps debacle version 3.0).

Hedge funds, credit default swaps, can be legitimate instruments when trying to insure against whether someone will default or not, but the problem came about when the market became more speculative in nature.

Fund of funds encourage hedge funds to seek steady income, which makes them tend to be insurers against default risk, rather than speculators on possible default.

He reentered the hedge fund business by founding Pershing Square in 2003 and taking a new short position against MBIA, purchasing credit default swaps that would rise in price if his predictions came true.