Pace Of Bankruptcy-Claims Trading Is Picking Up

Joseph Sarachek Headshot

By Joseph Sarachek

By Joseph Sarachek

Over the past several years, the market for trading in bankruptcy claims has  been anemic; there simply has not been product for investors to buy. 

The scarcity of megacases such as Lehman Brothers Holdings Inc., Bernard L. Madoff Investment Securities LLC, MF Global Holdings Ltd. and Nortel Networks Corp. which for several years provided a significant inventory for  claims traders, has resulted in a dearth of claims. 

Those cases generated widespread claims-trading activity and made many bankruptcy investors wealthy. 

Read the full Law360 article.
Joseph Sarachek is an Adjunct Professor.