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Exactly, it's a hedge fund, the customer base is extremely wealthy investors or pension funds. These customers won't think that the fund is in the wrong for ho
by user5994461 6y ago
Exactly, it's a hedge fund, the customer base is extremely wealthy investors or pension funds.
These customers won't think that the fund is in the wrong for holding money it is owed, from a company that might go bankrupt any minute and default on the debt.
- salawat 6y agoThat's the issue though. There is an obligation inherent to all actors in the system. A "Rule Zero", and "Rule 1/2" if you will. Zero: Thou shalt do good business to service they debts within the period negotiated, under the terms set forth prior. Thou shalt eschew business that knowingly unduly harms thy counterparty, or results in large chunks of value getting converted into lawyer's fees. Rule 1/2: Thou shalt be burned by bad business, because no one seems to grok and internalize the second tenet of Rule Zero.