Vulture capitalism

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Vulture capitalism and related terms are negative terms for investing in distressed assets and possibly also for perceived exploitative financial practices more generally.

Jews have been claimed to over-represented. See "External links" section.

Vulture fund

A "vulture fund" is a negative term for a fund that acquire distressed assets, such as debts considered to be very weak or in default. The term is often used to criticize profiting from debtors that are already in distress, stated to leave the debtors in even worse states or to hurt their recoveries.

This may cause negative effects for groups such as the ordinary citizens of a country in debt, who may have gained little from the original loan for reasons such as corruption by elites.

While negative, the term "vulture fund" has gained wide acceptance from governments, newspapers, academics and international organizations. There are also various derived terms.

The practice has sometimes been compared to usury.[1]

In some cases, vulture funds may benefit from foreign aid or debt relief programs affecting non-vulture fund debts and which are paid for by other countries, the vulture funds thus in effect being paid by the citizens of other countries.

Junk bonds

Some practices involving "junk bonds" have been described as vulture capitalism, enabling hostile takeovers of corporations, saddling them with huge debt while enriching the investors.

See also

External links


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