Analysis: The pros and cons of when you need vulture funds to swoop – Irish Independent

The term “vulture fund” is a metaphor used to compare investment funds to the behaviour of vultures “preying” on debtors in financial distress by purchasing the debt at a discount to make a large gain.

The “vulture fund” industry in Ireland began in 2011, with the sale of 400m of loans by Bank of Scotland’s. By 2013 we’d seen the emergence of whole loan residential mortgage portfolio trades. Since then massive sales by Nama, IBRC’s liquidators and Ulster Bank all added the trend.

In total, Ireland has witnessed completed portfolio trades of 62.9bn. Further loan sales will continue in 2016.

Deutsche Bank, Apollo, Cerberus, Lon…

Read the full article at: http://www.independent.ie/business/irish/analysis-the-pros-and-cons-of-when-you-need-vulture-funds-to-swoop-34624992.html