A vulture fund is a venture capital fund that refers to a financial institution where the main purpose consists of taking temporary participants in the capital of unlisted companies or hedge funds that invest in a public debt of an entity that is considered fragile or close to bankruptcy when they cannot meet the payments.
The apprentice modus refers to the way of proceeding of a person or a group of people of the vulture funds that consists simply of buying in the financial market where the exchanges of financial instruments are carried out where the prices of the debt of states consisting of the social, sovereign or coercive political organization of companies that are on the verge of bankruptcy. But through financial speculation it consists of the purchase or sale of assets where vulture funds buy debt securities of countriesin a difficult economic situation at a low price to then sue international forums and try to collect the full value of these bonds.
The vulture funds not only focus on corporate debtors, but also in debtors sovereign state under the new policy known as the "Brady Plan" which is a strategy adopted to restructure the debt acquired by developing countries with commercial banks, which It is based on debt reduction operations and debt services carried out voluntarily under market conditions, where they will restructure the outstanding debt balance and grant additional loans to those countries.
