WSJ – Hedge funds known to scavenge for distressed assets are buying up Nakheel’s upcoming $3.52 billion bond, complicating restructuring talks with creditors.
“It’s likely that who is picking up this bond now is distressed debt players and hedge funds,” said Will Duff Gordon, a strategy analyst for Data Explorers, which tracks financial data. “About 5% of the issue value of the Nakheel bond was bought by institutional asset managers and that has gone down to virtually zero.”
