25-32 Most vulture funds are formed by the mutual fund industry as a way around SEC restrictions from participating in the FI-originated loan sales market.

Question

Quizplus · Accepted Answer

Vulture funds are typically formed by private equity firms, hedge funds, or other specialized investors, not by the mutual fund industry. While some mutual funds may invest in distressed debt, they are not the primary players in the vulture fund market. Additionally, there are no SEC restrictions prohibiting mutual funds from participating in loan sales.

25-32 Most Vulture Funds Are Formed by the Mutual Fund