Vulture funds restructuring sub prime home loans

Bloomberg has an interesting story (hat tip Aleablog) about how vulture funds are buying up delinquent mortgages and then reducing the interest rate to allow the borrower to resume payments.

A market solution like this appears to be a better strategy than the loan waivers that we are seeing in India and the government sponsored home loan restructuring that is being proposed in the United States.

Posted at 6:47 pm IST on Fri, 29 Feb 2008         permanent link

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