Sun, Feb 1, 2015
A A A
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. Opalesque Exclusive: Ex-Citi trader launches 'sleep-at-night’ long/short equity fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: After working at Citi's proprietary trading desk, managing a large portfolio between 2008 and 2011, Joel S. Salomon founded SalaurMor Management in New Yor

  2. Investing - U.S. investors favor currency hedged Europe ETFs as euro tumbles, Quants win back investors as Swiss franc fuels volatility gains, David Einhorn's $7bn hedge fund is loading up on this stock, Hedge fund BlueMountain Capital unveils Ocwen Financial short, claims default on notes[more]

    U.S. investors favor currency hedged Europe ETFs as euro tumbles From Reuters.com: U.S. investors stung by the falling euro who want to stay invested in Europe are turning to exchange-traded funds designed to strip out the impact of the region's currency. The biggest among so-called "cur

  3. News Briefs - Millennials use tech tools to jump into investing, Winklevoss twins to launch bitcoin exchange with FDIC insured deposits, Robertson’s legacy from hedge funds to New Zealand, Real estate managers exploring smaller open-end funds[more]

    Millennials use tech tools to jump into investing It is the Facebookification of monetary investing. From social networking platforms that enable young investors to stick to every other's stock-picking mojo, to internet sites for initially-timers hungry for a piece of the Silicon Valley

  4. Update: Prosecutors seek 12 years for hedge fund manager Francisco Illarramendi[more]

    Komfie Manalo, Opalesque Asia: Federal prosecutors have asked the court to sentence convicted hedge fund manager Francisco Illarramendi to 12 years imprisonment for running an elaborate Ponzi scheme that bilked investors hundreds of millions in dollars, including a Venezuelan pension fund, report

  5. Institutions - Ontario pension fund leader calls all asset classes ‘expensive’, Taiwan's BLF plans $2bn in alternative mandates[more]

    Ontario pension fund leader calls all asset classes ‘expensive’ From WSJ.com: The head of one of the world’s largest pension funds said that across asset classes, “everything is expensive.” Ron Mock, who leads Canada’s $141 billion Ontario Teachers’ Pension Plan, said that the plan would