Leveraged Buyout Bankruptcies, the Problem of Hindsight Bias, and the Credit Default Swap Solution

  title={Leveraged Buyout Bankruptcies, the Problem of Hindsight Bias, and the Credit Default Swap Solution},
  author={Michael N Simkovic and Benjamin S Kaminetzky},
  journal={Corporate Governance \& Finance eJournal},
The United States is at the start of a surge in fraudulent transfer litigation. During the credit boom that started in 2003 and peaked in 2007, a remarkable volume of bank loans and bonds were issued, and a remarkable volume of highly leveraged transactions were financed. As these debts become due and financially strapped businesses struggle to refinance, the outcome will almost certainly be a wave of defaults, bankruptcies, and intercreditor disputes including fraudulent transfer litigation… Expand
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