The Guardian – Hedge fund LNG Capital is eyeing the debt of companies at risk of running short of cash, seeing the potential for high returns at an early stage of the credit crisis when companies are still able to tap rescue capital.
When a corporate borrower raises money or sells assets to get over a liquidity hump, its discounted short-term bonds — those maturing in up to 18 months — can become a buy, said the fund’s chief investment officer and founder, Louis Gargour.