PIPE Investment Not a Pipe Dream For GM

As the financial world continues to feel the reverberations of one of the most daring, controversial and largest bailouts of a publicly traded company by the U.S. government in history, that is the General Motors decline into bankruptcy and the U.S. government’s bailout, Corey Ribotsky believes he is seeing just another PIPE investment, albeit on a grander scale.

In an opinion piece which appeared in HedgeWorld News, the managing partner and head portfolio manager of the NIR Group of Roslyn, New York, Corey Ribotsky, described the many ways in which the recent U.S. government bailout of General Motors Corporation resembles a PIPE deal which Ribotsky’s investment firm has been dealing with for years.

PIPE is an abbreviation for private investment in public equity, and according to Ribotsky’s take on the bailout, the U.S. government is investing in the publicly held equity of General Motors, or what’s left of it.

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