Bankruptcy trading rises in November
U.S. bankruptcy claim trading rose in November to its highest level in months, according to a new report.
U.S. bankruptcy claim trading rose in November to its highest level in months, according to a new report.
During the month, the total value of claims rose to $3.2 billion from $1.8 billion in October, making it the highest value of claims traded since July.
The 942 bankruptcy claims traded was the highest number since April, and up sharply from the 664 that were swapped in October, according to a report by Reuters. The increased activity was due in part to the number of claims traded in the Tribune bankruptcy case.
Claims from the media conglomerate's ongoing bankruptcy doubled to 178 in November, the news source says. In addition, other active cases included Lehman Brothers Holding, the largest restructuring in U.S. history, and AbitibiBowater, which recently exited its Chapter 11 protection.
By value, the most trading came in the bankruptcy cases of Lehman Brothers, Cabi Downtown, Motors Liquidation Co., the former General Motors Company, and liquidated retailer Circuit City.
Bankruptcy trading is conducted when investors sell outstanding debt in companies, and bet on its rise and fall in the market.
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