"Vulture Fund"

Question

He encontrado esta frase en el actual hilo de JoyceM, los fondos buitres y lo vi como "vulture funds". Nunca había oído de esa expresión y encontré esto en wiki.com.

A vulture fund is a private equity or hedge fund that invests in debt issued by an entity that is considered to be very weak or dying, or whose debt is in imminent default. The name is a metaphor comparing these investors to vultures patiently circling, waiting to pick over the remains of a rapidly weakening company or, in the case of sovereign debt, debtor country.

Eso me ayudó a entender, porque un buitre círculos da vueltas alrededor de su presa, mientras que la presa está muriendo muere.

Por favor, corrija mi español.

I found this phrase in JoyceM's current thread, fondos buitre and I saw it as "vulture funds". I'd never heard of that expression and found this at wiki.com.

That helped me to understand, because a vulture circles around their prey while the prey is dying.

I have a very suitable picture of vultures, Bandita, would you like to borrow it? - annierats, Nov 26, 2012

Answer 1

Vulture funds are private equity funds that make investments in which the investors assume a high degree of risk in order to earn ridiculous earnings.

In business schools they teach that there is a correlation between risk and return.

A vulture fund might buy a certain investment at fire sale prices, say, 10 cents on the dollar, because it is perceived that the likelihood of repayment is very uncertain.

You can imagine...who would invest in Argentina's debt? Probably only someone who was so connected to the judges that they feel the U.S. legal system will support the repayment.

If the confidence in repayment now means that they are selling for 20 cents on the dollar, the investors have doubled their money.

This is drama on an international scale.

More like a tragedy Joyce. - ian-hill, Nov 26, 2012

I find the investment topics interesting. I´m going to look up ¨fire sale prices¨. I´m not sure what that means. Gracias, Joyce as your post is very helping in building vocabulary and learning new things. - bandit51jd, Nov 26, 2012

http://en.wikipedia.org/wiki/Fire_sale - JoyceM, Nov 27, 2012

"Deeply discounted" - JoyceM, Nov 27, 2012

They told me when I got an M.B.A. that what we were really doing was learning vocabulary. It is a specialized topic with colorful language. - JoyceM, Nov 27, 2012

Answer 2

porque un buitre da vueltas alrededor de su presa mientras que ésta muere.

Gracias por tu correciónes! - bandit51jd, Nov 26, 2012

Answer 3

Just for your information, Bandit, as I know you like horses :

In parts of rural Spain, if you lose a horse, the ayuntamiento will come and take the dead body away to the nearest mountain, where it is left out for the Griffon vultures, a species near extinction. Thereby, at least your loss will help somebody. It was, at least a few years ago, a totally free service.

In England it will cost you £ 200 to have the carcass removed by the local hunt kennels, who have to incinerate it because we have some rather complicated laws here, regarding the disposal of dead animals. Your loss will be nobody's gain whatsoever. Not even the hounds.

I speak from unfortunate experience.

You had a dead horse? At least you have authorities who will remove it. What's your other alternative? Dig a grave for it? - JoyceM, Nov 27, 2012

Answer 4

De wiki.com: Una venta de liquidación es la venta de productos a precios sumamente rebajados, típicamente cuando el vendedor se enfrenta a la bancarrota u otra angustia inminente. El término se originó en referencia a la venta de productos con un descuento pesado debido al daño de fuego.

Por lo tanto, recibió su nombre del "daño de fuego".

Por favor, corrija mi español.

From wiki.com: A fire sale is the sale of goods at extremely discounted prices, typically when the seller faces bankruptcy or other impending distress. The term originated in reference to the sale of goods at a heavy discount due to fire damage.

So, it got it's name from "fire damage".