Litigation

"Heady Junk Bond Returns Attract Funds" Deja Vu All Over Again?

By John Darer

The New York Post reports that junk bond bets have soared to their best comeback since the 1980s Year over year returns for May were purportedly 25.4%, citing at Bank of America Merrill Lynch report. The Post alleges that analysts say "risks of distressed debt may not be as scary as expected because some of the investments will be packaged into assets that are guaranteed by the government's Term Asset-Backed Securities Lending Facility (TALF)"

Apparently CALPERS, the California Pension funds is considering putting about $5B or 3% of its portfolio into distressed assets.

John King an analyst with CreditSights soberly states that this is the first big rally we've seen since the tech crash (9 years ago)

Tort victims may encounter financial planners or financial advisers who suggest putting part of their recovery into these types of funds. Be careful.

Full post as published by Structured Settlements 4Real on July 01, 2009 (boomark / email).