Tue, Jun 19, 2018
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. Lyxor recommends stockpicking strategies, L/S equity hedge funds well equipped for turbulent markets[more]

    Matthias Knab, Opalesque: Market developments in May saw some trend reversals across the fixed income and commodity space. On the one hand, the unfolding of the Italian political crisis coincided with a rebound of U.S. Treasuries during the second half of May. On the other hand, the rising likeli

  2. North America - George Soros: 'Everything that could go wrong has gone wrong'[more]

    From Marketwatch.com: George Soros, tell us how you really feel. 'Everything that could go wrong has gone wrong. [Trump] is willing to destroy the world.' The 87-year-old billionaire clearly isn't shy about expressing his generally liberal views and distaste for Trump's "America First" platform,

  3. Paper: The performance of stocks actively pitched by hedge funds[more]

    Using a novel dataset drawn from investment conferences from 2008 to 2013, I show that hedge funds take advantage of the publicity of these conferences to strategically release their book information to drive market demand. Specifically, hedge funds sell pitched stocks after the conferences to ta

  4. North America - US fundraising for special purpose acquisition vehicles hits record this year[more]

    From AFR.com: Special purpose acquisition vehicles (spacs) are hitting the US market at the fastest rate on record, attracting the likes of Goldman Sachs and hedge fund investor Daniel Loeb for the two largest such deals in 2018. Spacs have raised $US4.5bn so far in 2018, the largest amount fo

  5. Investing - Man Group and AQR try to take aim at private equity industry, Hedge funds poised to be winners in AT&T-Time Warner deal[more]

    Man Group and AQR try to take aim at private equity industry From FT.com: The popularity of private equity investments has prompted asset managers such as Man Group and AQR to devise strategies that aim to replicate PE returns but at a much lower cost to investors. Both companies a