( www. thestreet.com ) – Using a penny stock to hedge long positions in a bankrupt company’s bonds sounds like a recipe for disaster, and for some hedge funds trading Delphi(DPHIQ:Other OTC – commentary –research – Cramer’sTake) last week, it was.
As reported here last week, many event-driven funds were caught leaning that wrong way after Delphi sought Chapter 11 protection on Oct. 8, although some appeared to have traded out of the bonds the day before the filing.
