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Vulture funds compete for slim pickings

Banks are hanging on to distressed assets rather than selling them cheaply

Funds that snap up the cheap debt of troubled companies – often referred to as vulture funds – expected to have a field day during a financial crisis that took down several banks and depressed asset prices. But the banks have clipped their wings.

What might initially have appeared to be a feast for scavengers, has turned into a poker game between distressed debt funds and the bankers. So far, the bankers are up.

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