“Vulture” hedge funds, which typically target distressed sovereign bonds, are set to turn their attention to other forms of public borrowing, in an attempt to keep forcing payouts from indebted governments.

Significant changes to government bond contracts in the wake of Argentina’s default this year are making it harder for hedge funds to buy the bonds of indebted countries cheaply, resist their debt restructuring proposals, and then sue for full repayment.

But while these changes should act as a “shark repellent” that deters hedge funds from buying distressed sovereign bonds, Lee Buchheit – the lawyer who was lead adviser to Greece in the biggest debt restructuring in history – has warned that other types of government debt still lack protection. This unprotected debt can include loans, trade finance papers and bilateral credits.