Non-Performing Asset Funds to Purchase FTX Bankruptcy Claims
It is reported that a person familiar with the matter said that non-performing asset funds can purchase FTX bankruptcy claims at a maximum price of 20% in the …
It is reported that a person familiar with the matter said that non-performing asset funds can purchase FTX bankruptcy claims at a maximum price of 20% in the private OTC market. After FTX, it now owes $3.1 billion to the 50 largest creditors. In some open bankruptcy markets, the transaction valuation of bad FTX assets is about 16% of the claim face value. The individual claims listed for sale on Xclaim, the platform that provides transaction encryption claims, are up to 27 million US dollars. An anonymous FTX creditor said that the pricing of the private OTC market was similar, and the purchase price of the non-performing asset fund was between 15% and 20% of the nominal value of the claim. “Their purchase is expected to receive funds within five years. If these funds finally receive 25% of the money within five years, this is not a good deal, because the annual recovery rate is only about 5%. I think many of these companies are expected to recover funds equivalent to 50% of the face value of the claim.”
Insiders: FTX bankruptcy claims are sold at 20% in the private OTC market
Interpretation of the news:
According to a person familiar with the matter, non-performing asset funds can now purchase FTX bankruptcy claims for a maximum price of 20% in the private OTC market. After being declared bankrupt, FTX owes a total of $3.1 billion to its 50 largest creditors. However, in the open bankruptcy market, the transaction valuation of bad FTX assets is only about 16% of the claim face value.
The individual claims listed for sale on Xclaim, a platform that provides transaction encryption claims, go up to $27 million. An anonymous FTX creditor said that the pricing of the private OTC market was similar, with the purchase price of the non-performing asset fund ranging between 15% and 20% of the nominal value of the claim.
The purchase of these claims is expected to receive funds within five years. However, if these funds only receive 25% of the money within five years, it would not be considered a good deal due to the low annual recovery rate of approximately 5%. But it is believed that many of these companies can recover funds equivalent to 50% of the face value of the claim.
Non-performing asset funds are specialized investment entities that buy non-performing assets from financial institutions and sell them at a profit after recovering the outstanding amounts from the borrowers. These funds usually purchase such assets at a significant discount and then put in efforts to recover the amounts owed to the creditor. Through the purchase of FTX bankruptcy claims, non-performing asset funds are hoping to recover a significant portion of the money owed to the creditors.
In conclusion, the news that non-performing asset funds can purchase FTX bankruptcy claims at a maximum price of 20% in the private OTC market is significant for the investment industry. The purchase of these claims can offer the possibility of recovering funds equivalent to 50% of the face value of the claim. However, since the recovery rate is only about 5% annually, it is crucial for such funds to ensure they are investing in sound debts to secure substantial returns.
This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/1879/
It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.
Recommended articles
-
Revolut’s First Full Year Profit: Reality or Smoke and Mirrors?
According to reports, the long-delayed accounts of Revolut, a British digital bank, showed that the company achieved its first full year profit in 2021, but the audit firm BDO expr
-
What is FLYC Coin (fic Coin)?
What is FLYC Coin? What is FLYC Coin? Flyc is a deflationary token. Flycoin is
-
Federal Reserve Interest Rate Swap Predicts No More Rate Hikes
It is reported that the Federal Reserve’s interest rate swap currently shows that the most likely scenario is that the Federal Reserve will no longer raise interest rates. The Fed’s interest rate swap currently shows that the most likely scenario is that the Fed will no longer raise interest rates Analysis based on this information:The Federal Reserve is the central banking system of the United States, controlling the supply of money and interest rates. The interest rate swap is a tool the Federal Reserve uses to assess the likely direction of interest rates in the future. Based on current reports, the Federal Reserve swap predicts that the most likely scenario is that interest rates will not increase any further. The interest rate swap can be used to forecast the market’s expectations of interest rates in the future. The swap is a financial contract between two parties which allows them to exchange future payments based on different interest rates. The Federal…
-
NFT Whale Makes a Huge Profit Selling Bored Ape Yacht Club NFTs
It is reported that the NFT whale, which holds more than 70 Bored Ape Yacht Club NFTs, sold them yesterday through Blur for about US $10 million.
NFT…
-
What is Binance Comp?
Binance Comp is a payment network based on blockchain and smart contracts that
-
Bitcoin Prices Projected to Peak at $45,000 Next Month
According to reports, according to Vetle Lunde, a senior analyst at K33 Research, Bitcoin prices may peak at around $45000 next month. BTC has risen by 80% this year, significantly
-
What Altcoins to Buy in 2018? (Which Altcoin is Good?)
What altcoins to buy in 2018? Altcoins have been referred to as the \”crypto wint
-
FATF agrees on action plan for global implementation of encrypted asset standards
It is reported that the Financial Action Task Force (FATF) said that representatives from more than 200 jurisdictions have reached an agreement on the \”action …
-
European Central Bank Board Member: Digital Euro May Be Rejected
According to reports, Fabio Panetta, a member of the European Central Bank\’s board of directors, stated in a speech to the Parliamentary Committee on Economic and Monetary Affairs
-
What does “maker单” mean (maker+)
What does \”maker单\” mean? Maker单 is a contract deployment using the Maker protoco
-
The Rise of OKB in the Market: Understanding its Volatility and Risk Control Measures
According to reports, the market shows that OKB has exceeded $50 and is currently trading at $50.08, with a daily increase of 15.34%. The market is highly volatile, so please take
-
Ethereum Makes Significant Gain in Market
According to reports, the market showed that Ethereum rose by more than 5.00% in the day and is now at 1756 US dollars per piece. Ethereum rose more than 5.00% in the day to 1756 US dollars Analysis based on this information:The market data shows a significant gain for Ethereum, with a rise of more than 5.00% during the day’s trading. At present, the cryptocurrency is priced at 1756 US dollars per piece, marking a positive trend in the market. This rise in Ethereum’s value comes as a welcome relief for investors, who have witnessed volatility and uncertainty in the market over the last few months. The surge in price reflects a growing confidence in cryptocurrencies, especially with recent announcements from companies like Tesla, Mastercard, and Apple expressing interest in digital currencies. One of the main factors contributing to Ethereum’s rise is its growing popularity as a platform for decentralized applications. Ethereum provides a secure and reliable infrastructure for developers…
-
The Rise of Binance.US Trading Volume: A Record-Breaking Milestone
According to reports, CZ, the CEO of Binance, a crypto trading platform, said that the weekly trading volume of Binance. US (excluding Binance) reached a record high of 41% of Coin
-
Understanding the Sudden Surge in AAVE’s Market Value
According to reports, the market shows that AAVE has exceeded $70 and is currently trading at $70.01, with a daily decline of 0.61%. The market is highly volatile, so please take r
-
What is the imtoken private key
What is an imtoken private key? According to official information, how does an imtoken private key use blockchain technology to allow users to conduct transactions in their wallets Specifically, it means achieving secure access to accounts, identity information, and other sensitive data through the ImToken private key, and providing corresponding password services; The imtoken private key can also set special security levels for users’ digital asset management and transfer It is reported that imtoken private key and DappAppimToken based on Ethereum have jointly launched a hidden virtual card (MintCard) for games, which will be designed as a digital voucher for everyone to collect and use.
-
Alliance Block and ABO Digital team up to boost cryptocurrency investment
It is reported that Alliance Block, a blockchain infrastructure provider, has announced a partnership with digital investment company ABO Digital to provide low risk and compliant financial support for cryptocurrency projects for institutional and retail investors through tokenization. ABO Digital is the digital asset investment department of the ABO Group, which provides private financing for listed companies and will help negotiate and construct financial instruments based on the capital and liquidity objectives of the project. AllianceBlock collaborates with ABO Digital to develop token structured products Analysis based on this information:Alliance Block, a leading blockchain infrastructure provider, has recently announced its partnership with digital investment firm ABO Digital. The collaboration aims to provide institutional and retail investors with low-risk and compliant financial support for cryptocurrency projects through tokenization. This partnership is a much-needed boost for the cryptocurrency market, which is still struggling to gain wide acceptance among traditional investors due to uncertainties surrounding its regulatory framework. By leveraging Alliance Block’s blockchain…