Sun, May 29, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Secondary market to expand on back of regulatory change says Gamma Finance

Tuesday, November 08, 2011

amb
Florian de Sigy
By Beverly Chandler, Opalesque London:

A probably unintended result of regulatory change designed to improve liquidity and transparency in institutions is driving business into the secondary market, says Florian de Sigy, chief executive officer and founder and Ben Keefe, investment director and head of advisory at Gamma Finance.

Insurance companies will be subject to Solvency II and banks to Basel III, regulatory initiatives designed to limit the potential for a recurrence of the liquidity crisis of a few years ago. Keefe explains: "One of the main tools in the regulators armoury is the ability to charge higher regulatory capital for illiquid assets resulting in a shift in the liquidity profile of the balance sheets of financial institutions. The endgame is that institutions need more liquid transparent assets relative to before. We are seeing a raft of institutions selling off their private equity arms and this is a result of the increasing regulatory capital that the groups would need to support these businesses."

Keefe believes that it is entirely right and proper that these initiatives are being rolled out but has observed an interesting effect that may have a negative impact on the continuing recovery of funds stuck with illiquid assets. "Banks are being required to increase their capital ratio and they can do this by increasing cash or reducing riskier assets" he says. This results in a reduction in lending which impacts directly ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Americas - Australian banks sending U.S. hedge funds broke, Ryan Puerto Rico ‘rescue’ bill could be windfall for hedge funds[more]

    Australian banks sending U.S. hedge funds broke From SMH.com.au: US hedge funds are not having the best of years. Profits are hard to find, they're underperforming and the punters are losing patience, withdrawing US$15 billion ($20.8 billion) in the March quarter. They're expected to wit

  2. Investing - Billionaire Wilbur Ross likes the look of Chinese bad loans, Hedge funds are still relevant in a diversified portfolio: 4 fundamental criteria for superior manager selection[more]

    Billionaire Wilbur Ross likes the look of Chinese bad loans From Bloomberg.com: U.S. billionaire Wilbur Ross said he’s considering investing in nonperforming loans in China, as Moody’s Investors Service said that the nation has the tools to prevent a financial crisis in the near term. I’

  3. Investing - Blackstone gives pricey Canadian energy and property thumbs down, One of the most concentrated hedge fund bets is getting crushed, Facebook is hedge funds' new tech darling,[more]

    Blackstone gives pricey Canadian energy and property thumbs down From Bloomberg.com: Canada’s energy assets are uneconomic and real-estate markets overvalued, making them less attractive for investment than in the U.S. and elsewhere, according to Tony James, president of Blackstone Group

  4. Study - Only 30% of institutional hedge fund portfolios beat the benchmark[more]

    Bailey McCann, Opalesque New York: A new study from CEM Benchmarking, an independent provider of cost and performance analysis for pension funds, shows that only 30 percent of institutional investors hedge fund portfolios beat the benchmark after fees. The study provides in depth analysis of real

  5. Opalesque Exclusive: $1bn hedge fund club grows to 668 managers, continues to dominate (Part One)[more]

    Komfie Manalo, Opalesque Asia: Despite an underwhelming 2015 and a slow start to 2016 in terms of performance, one group of managers that continues to dominate the assets of the hedge fund industry is the so called $1bn club – hedge fund managers with at least $1bn in assets under management (AU