'They're Not Just Punks' – How Reddit Raiders Unleashed Chaos In The Distressed World

While the Reddit Raiders have made headlines this past six to nine months by destroying hedge fund short-sellers, crushing options traders, and blowing the minds of fundamental-based analysts; there is another group of investors that has suffered quietly behind the scenes.

Distressed credit investors have long had to have thick skins – taking criticism as predators, even as they sometimes rescue firms no one else will touch and generate returns for pensions, endowments and foundations.

Opportunities to buy on the cheap were rapidly evinced by The Fed last March when it took the unprecedented step of entering the corporate bond market…

Source: Bloomberg

Fiscal and monetary stimulus have greased markets so thoroughly that many of the riskiest companies are now breezing through debt walls with cheap new financing, rather than running into the kind of dead-ends and defaults that generate

Keep reading this article on Zero Hedge - Blog.

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