Wed, Oct 7, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

The market may be forcing us into more illiquid situations

Thursday, October 25, 2012

Benedicte Gravrand, Opalesque Geneva:

Participants at the recent Opalesque New York Roundtable discussed whether now is the right time – just as liquidity is being injected into the markets – to invest in illiquid instruments and add leverage, or whether one should sit and wait. Opinions were divided – although all agreed there are few investment opportunities these days.

"Quantitative easing by the Fed and other central banks recently has injected a huge amount of liquidity into the markets," said Ron DiRusso Head of Investment Research at FX Concepts, a $3bn hedge fund firm. "That liquidity should be good for risk-seeking markets, probably at least through the end of 2012."

But beyond that, he added, markets will realise global economies are not responding to policy moves. That’s when it will become interesting and when the recent move in risky assets should reverse.

Add to that the potential fiscal cliff in the U.S. and a worsening European recession, and you will get a stronger U.S. dollar, he believes. The U.S. fiscal cliff refers to a large predicted reduction in the budget deficit and a corresponding projected slowdown of the economy if some tax hikes and spending cuts are allowed to expire or go into effect at the beginning of 2013 (here are some ......................

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. U.S. hedge funds prepare for worst finish this year since 2008[more]

    Komfie Manalo, Opalesque Asia: U.S.-focused hedge funds are preparing for their worst year since the 2008 global financial crisis, following a series of letdown including the market sell-off in August and the sell-off in healthcare and biotechnology sectors last month, reported

  2. Investing - AQR Capital and Renaissance Technologies raise stakes in Southwest Airlines[more]

    From In the previous part of this series, we saw how institutional investors played Southwest Airlines (LUV) in 2Q15. Now let’s move on to the trades executed by key hedge funds in Southwest Airlines over the same period. … Most of the hedge funds that had significant exposu

  3. DoubleLine’s Jeffrey Gundlach warns of another round of market shakedown[more]

    Komfie Manalo, Opalesque Asia: DoubleLine Capital co-founder Jeffrey Gundlach is painting a bleak future as he warned that the U.S. equity market and other risk markets, such as high-yield "junk" bonds, are facing another round of selling pressure. Gundlach said in an interview with

  4. A hedge fund strategy that seems to have fizzled[more]

    From The hedge fund strategy that has attracted the most money this year is on course to cause some of the biggest losses for investors, in the latest example of the dangers of going with the crowd. Institutions and individuals have piled an estimated $20 billion (Dh73 billion) into ma

  5. Hedge fund Barnegat survives September’s market selloff[more]

    Komfie Manalo, Opalesque Asia: Bob Treue’s $679 million Barnegat Fund proved resilient after another month of market letdown as the hedge fund gained 2.2% last month, bringing its year-to-date gains to 2.8%. Treue said in his monthly report to i