Although distressed debt hedge funds have yet to benefit from the credit crisis, they undoubtedly will in the coming year, Reuters reports.
“You ain’t seen nothing yet,” said a hedge fund-of-funds executive speaking on the condition of anonymity. “It’s going to be huge. The tea leaves are not difficult to read. It will come in all sorts of forms—banks having to offload stuff. It’s not just the debt of distressed companies. The time must come [for banks to sell assets], having got themselves into a tremendous hole.”