Business / Taxes / Vulture Fund: Like the scavenging bird of prey that lends its name to the fund, a vulture fund seeks out depressed or endangered investments. Many vulture funds focus on real estate, but others invest in bonds that have been downgraded or are in default and other high-risk securities. The strategy behind vulture investing is that such troubled securities have the potential to provide a large return eventually, in spite of their current vulnerable position. Most vulture funds are limited partnerships, but some are retail mutual funds that are open to individual investors.
Fund Adjective Synonyms: supply, stock, reserve, store, pool, cache, reservoir, repository, mine
Fund Noun Synonyms: finance, back, capitalize, stake, support, pay for, endow, grant, subsidize
Business / Finance / Prerefunding: Procedure of floating a second bond at a lower interest rate in order to pay off the first bond at the first call date and to reduce overall borrowing costs. MORE