Sun, Sep 21, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Regulators look more closely at non-bank lending as hedge funds, investors see opportunity

Wednesday, April 03, 2013

Bailey McCann, Opalesque New York:

Non-bank lending, or shadow banking has been an area of concern for regulators since the crisis. However, allocators, hedge funds and businesses, are looking to the space more and more, as liquidity in more traditional banking spaces dries up. This reality is true worldwide, causing regulators to try and find ways to limit the scope of shadow banking. However, they may find little support for new rules even in the public.

Global demand

Shadow banking has long been a space without much regulation, or even much public awareness of its existence. Since the crisis, shadow banking has taken on a more public profile, and arguably a more significant role in the global financial system. "Capital requirements, regulation, and deal size have made banks not to lend without significant provisioning," said Alfredo González, Co-Fund Manager, LW Short Duration Fund, in an interview with Opalesque. He noted that because of new rules on traditional banks, those banks want bigger deals, with better, creditworthier entities often at the expense of smaller, but still sound ones. LW Asset Management, the firm that manages the LW Short Duration Fund, is focused on Latin America. Middle market Latin American businesses have seen many credit options dry up in the wake of the crisis, creating a significant demand for non-b......................

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. SEC charges 19 investment firms and one trader for breach of Rule 105[more]

    Benedicte Gravrand, Opalesque Geneva: The Securities and Exchange Commission (SEC) started a push to enhance the enforcement of Rule 105 of Regulation M last year to uncover hedge funds and private equity firms that have illegally participated in an offering of a stock after short selling it duri

  2. Fund managers, bullish on Europe, anticipate monetary policy separation of Fed and ECB[more]

    Komfie Manalo, Opalesque Asia: At least 202 fund managers with $556bn of assets under management said that while the European Central Bank (ECB) has eased its monetary policy that sent sentiments towards Europe to pick up, the Fed is expected to hike its rate in the spring of 2015. Investor

  3. Institutions - North Carolina workers call on state pension to dump up to $6bn in hedge funds, UK pension fund criticizes hedge fund fees[more]

    North Carolina workers call on state pension to dump up to $6bn in hedge funds From Forbes.com: The State Employees Association of North Carolina this afternoon called on state Treasurer Janet Cowell to withdraw all investments in hedge funds, which appear to amount to approximately $6 b

  4. News Briefs - Limited partners of investment managers may be subject to self-employment taxes, Just one week left until NYC's Rocktoberfest[more]

    Limited partners of investment managers may be subject to self-employment taxes On September 5, 2014, the Internal Revenue Service (“IRS”) issued Chief Counsel Advice 201436049, concluding that members of an investment manager were subject to self-employment taxes with respect to their e

  5. Institutions - Adviser's faith in hedge funds unshaken by CalPERS' move Advisers weigh in on CalPERS’ decision, Gina Raimondo sees no reason to follow California’s lead, exit hedge funds, Danish pension funds step up 'alternative investments'[more]

    Adviser's faith in hedge funds unshaken by CalPERS' move From WSJ.com: Financial advisers who use hedge funds in their clients' portfolios say they aren't rethinking that approach after a huge California pension fund announced plans to exit the hedge-fund market. The decision by the Cali