Originally Posted by
Seneca Pilot
Very risky, but cheap so kind of like a lottery ticket. The speculators that bought the AMR shares for pennies cleaned up but they could have easily lost their entire investment. It depends on how much is left after the secured creditors pick the bones.
There is, however, a significant subset of the financial hedge fund world called “vulture funds”;that routinely buy up the bonds of distressed companies in - or headed for - bankruptcy, then send their lawyers in to harass the process until the bankruptcy court gives them a split of the spoils that generally although not invariably gives them a healthy profit.
https://www.investopedia.com/terms/v/vulturefund.asp
They will even go after countries...
https://qz.com/707165/wall-streets-v...lobal-economy/