Financier Paul Singer is someone who makes money on other people's debts
A debt hole is a weakness of any state and government, which, due to its stupidity and desire to please the people, actually destroys its own economy.
The most interesting thing is that the debt trap as a result of mismanagement sank dozens of countries, not to mention the largest companies, which, having enormous capitalization, suddenly fell into oblivion.
However, if shareholders and ordinary workers suffer continuous losses, then Vulture traders at this moment earn millions of dollars.
You will become acquainted with the biography of one of these “Vultures”, Paul Singer, who made billions from other people’s debts while reading this article.
Early years.
Paul Singer's training Future billionaire Paul Elliott Singer was born on August 22, 1944. He grew up and spent his childhood in a town called Teaneck, New Jersey.
His father was an ordinary pharmacist, and his mother was responsible for running the household and raising children.
Virtually nothing is known about Paul’s early years; in his youth, Singer was very interested in psychology, so after graduating from school, the obvious choice was made towards Rochert University,
Where he received a bachelor's degree in psychology in 1966. He then continued his studies at Harvard Law School, graduating in 1969.
Trader career
Paul Singer was a very gifted and financially savvy man, so when you study his biography, you will not come across dozens of companies that he changed every year.
The only place where he worked for someone other than himself was the investment bank Donaldson, Lufkin & Jenrette, to which he actually devoted three years of his life.
In three years, he acquired tremendous experience and the first capital, which became the basis for opening his own company.
So in 1977, having collected the capital of his friends and relatives in the amount of $1.3 million, Paul created his own investment fund called Elliott Associates LP
And to optimize taxation, he also opened a subsidiary in the Cayman Islands, NML Capital Limited.
Principles of work and incidents
Paul Singer bears the nickname “Vulture” for a reason, because it actually characterizes the principles of his work.
So Paul and his fund are engaged in buying up the debts of companies or government bonds that are on the verge of default.
Thus, the price of debt costs pennies, but thanks to pressure and a strong position in international courts, it is possible to squeeze out maximum profits at low costs.
One of these well-known stories is the operation associated with the purchase of defaulted bonds of Peru in the amount of $11 million.
According to the debt bonds, the Peruvian government was supposed to pay about $58 million, which it categorically refused to do.
However, when internal unrest began and the representative of Peru tried to escape, Paul’s company blocked all planes and issued an ultimatum to pay off the debt.
Naturally, in order to save his life and not go to prison, the president repaid the debt to Singer’s company in full, which made it possible to earn 500 percent of the profit from one transaction.
Also, a rather interesting situation has arisen with the purchase of bonds from a country such as Argentina.
After the default, this country contacted Paul Singer and offered peace, paying only 30 cents on one dollar. This situation did not suit the fund, so it began to defend its position in international courts.
As a result, many of Argentina's ships and assets were blocked, after which the government made payments on its obligations. Huge money brought Paul into power, as he became one of the purses of the Republican Party.
It is worth noting that Paul Elliott Singer actively defends the LGBT community and was the only Republican who lobbied for allowing gay couples to marry. According to many financial ratings, Paul Singer's personal net worth is estimated at $3.2 billion.
Another option for making money on debts is to open transactions for the sale of shares of companies with large accounts payable; filing claims will definitely lead to a drop in price and, as a result, you will make a profit.
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