vulture funds

Vulture funds are investment firms that buy distressed debt—such as unpaid loans or bonds—at a deep discount, often from countries or companies facing financial trouble. Their goal is to maximize profit by eventually recovering the full value of the debt, sometimes through legal actions or negotiations. While they provide liquidity to battered markets, critics argue they can pressure struggling nations or companies to pay more than they can afford, potentially hindering economic recovery. Overall, vulture funds operate by taking calculated risks in distressed situations to generate high returns.