Off-Shore Hedge Funds and Junk Bonds

[Rubia Warren]

Can someone please give me a quick overview of these things for a moron like me? What are off-shore hedge funds, and what are junk bonds? And what links them to some kind of corruption?

I could prolly do a google search but I am lazy, and I like the info I am given here better- it's the paraphrased info I'd have gotten if I'd have done a google search.
Thanks in advance.

[TheBibleMeister]

Can someone please give me a quick overview of these things for a moron like me? What are off-shore hedge funds, and what are junk bonds? And what links them to some kind of corruption?

I could prolly do a google search but I am lazy, and I like the info I am given here better- it's the paraphrased info I'd have gotten if I'd have done a google search.
Thanks in advance.


An off-shore hedge fund is when you keep save up some money to buy some little bushes, write a little note saying the money is to buy little bushes, put the money and the note in a bottle, and throw it all into the ocean. Some day, it may wash up on another beach somewhere, and somebody will read the note and buy some little bushes to make a hedge with.

A junk bond is a special glue, made in China from crushed rhinoceros horns, to glue together boards to make a junk.

If you have any other questions, please do not hesitate to contact me.

[Alien]

Can someone please give me a quick overview of these things for a moron like me? What are off-shore hedge funds, and what are junk bonds? And what links them to some kind of corruption?

I could prolly do a google search but I am lazy, and I like the info I am given here better- it's the paraphrased info I'd have gotten if I'd have done a google search.
Thanks in advance.

Junk bonds are just like any other bonds (you are lending money to a company at a given rate of interest with a given repayment date) but are high risk because the borrower has a poor credit rating. Some junk bonds will never be repaid. To compensate for this, they typically pay 4-6% more. If you know what you are doing they can be a good investment, but they are always risky, as high yield investments tend to be.

They are linked to corruption because of some shady practices that went on in the 80's.

An off shore hedge fund ... here's a cut and paste that seems to say it well.

Offshore hedge funds are unregistered pooled investment funds domiciled outside the US (i.e., "offshore") and open only to non-US investors or, occasionally, US tax-exempt "accredited" investors. Offshore hedge funds are usually structured as corporations. Like domestic hedge funds, they are not subject to portfolio management restrictions that may apply to registered funds. Generally, the number of investors is not restricted. Many offshore hedge funds are formed in international tax havens such as Bermuda or the Cayman Islands, which offer privacy as well as tax advantages. It is important to keep in mind that the domicile of a hedge fund is not an indication of its quality.

I don't know about corruption .... they could be used to evade for US tax, perhaps?