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Role reversal as hedge funds assess exposure to banks
Hedge funds are scrutinising their levels of exposure to bank defaults, in a telling reversal of conventional risk management concerns.
While bank exposure to the hedge funds they trade with has been in sharp focus since the 1998 collapse of Long Term Capital Management, a run of record-breaking losses and bailouts in banking has hedge funds re-examining how much they can be hurt by a bank collapse.
Comment: Most Hedge Funds Suck, but some in unexpected ways.
Hedge funds are scrutinising their levels of exposure to bank defaults, in a telling reversal of conventional risk management concerns.
While bank exposure to the hedge funds they trade with has been in sharp focus since the 1998 collapse of Long Term Capital Management, a run of record-breaking losses and bailouts in banking has hedge funds re-examining how much they can be hurt by a bank collapse.
Comment: Most Hedge Funds Suck, but some in unexpected ways.