Most vulture funds are formed by the mutual fund industry as a way around restrictions from participating in the FI-originated loan sales market.

Question

Quizplus · Accepted Answer

Vulture funds are typically not formed by the mutual fund industry. They are usually formed by specialized investment firms that seek distressed assets at a discount. Mutual funds may invest in vulture funds, but they do not typically form them to participate in the loan sales market.

Most Vulture Funds Are Formed by the Mutual Fund Industry