Money to be made from Madoff ?
Particularly in the current economic climate and as is always the case, there is a bull markey somewhere. That bull market can arise from negatives rather than positives and this is a case in point.
Few people will be unaware of the biggest financial scandal of modern times, the Madoff fraud. As matters have unraveled and asset tracing has had time to reap rewards, a proportion of the funds fraudulently obtained by Madoff are being collected and work continues to lay claim to other amounts. This of course will only ever be a fraction of the huge total lost, but one aspect also now coming to the fore is debt trading relating to Madoff.
Some banks and financial institutions, apparently on behalf of clients, are starting to look at buying the debts owed to other institutions by Madoff, on the basis they will pay a small percentage of the value of the debt and then seek to collect, hopefully a much bigger percentage by way of any ultimate payout to creditors.
Among those banks understood to be buying such debt from other creditors are Royal Bank of Scotland and UBS.
The amount payable for debt can vary widely from as low as less than 10% with very risky unsecured debt for consumers to as high as 70% of the debt where there are reasonable prospects of recovery and the payor is financially quite sound. Apparently, Madoff related debt has fluctuated at somewhere between 30-70%.
For bespoke debt sale, debt purchase and debt recovery, Bluestone ARM is an up-and-coming niche player in this market, which has a highly individual approach to individual, hard to recover debts.