Hedge Funds Find A New Financial Product To Trade: Lehman Bankruptcy Claims


Hedge funds and investment banks are trading Lehman bankruptcy claims. And it’s not just a matter of a couple of distressed debt funds buying the claims—it really looks like they are being actively traded.

Credit Suisse, for instance, bought a $423 million claim from Citadel recently. And now it is looking to sell a $1 billion claim, according to Bloomberg.

We’re not quite sure how this market is working yet or how actively the claims are being traded.  According to Bloomberg, Elliott Management, King Street Capital and Paulson & Co collectively have accumulated $13 billion of claims against Lehman. Silver Point Capital is also a buyer.

We’ve got to admit that this is one of the things we love about finance. People will find a way to trade everything.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.