Hedge funds find joy in energy's distress

special report: energy/commodities

A fast-moving secondary market exists among financial institutions, including hedge funds, trading the debt of distressed power-generation projects and the related equity interests in the holding company structure that owns the generation.In classic manner, this flowing capital continues to encounter evolving regulatory requirements of the US Federal Energy Regulatory Commission (FERC), and certain state regulatory bodies.Hedge funds must have a broad understanding of the regulatory and ener