NEW YORK -(Dow Jones)- Call it strong-arming, opportunistic, or just plain old clever.
Whatever the judgment, hedge funds are using claims that companies reneged on their commitments to bondholders as a new strategy to obtain returns at a time when investing in convertible bonds has become increasingly challenging for these investors.
In this post-Enron age of sensitivity to corporate governance and stricter regulatory requirements, more companies are reevaluating their financial reporting standards, or finding themselves the subject of investigations into their accounting practices. This has led to a record number of filing delays of financial statements with the Securities and Exchange Commission.
