Tue, Sep 27, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Marinus Capital: deleveraging and regulation cause unintended consequences for markets

Friday, August 01, 2014

Bailey McCann, Opalesque New York:

New research from Connecticut-based credit specialist Marinus Capital shows that the wave of deleveraging and regulation that followed the financial crisis is creating unintended consequences for financial markets. The paper looks at the real consequences of experiencing and reacting to debt super cycles in the economy which can span 30 years.

"This is a follow up to some of my previous work, there's a myth that the G7 has seen massive deleveraging and that's just not totally true," explains research author and Senior Strategist at Marinus Capital Advisors, Sam DeRosa-Farag in an interview with Opalesque. "We haven't mitigated the risk in the system, we've just transferred the risk from leverage to liquidity. Risk in the system does not go away, it just gets transformed. In many ways there's more alpha derived from this transformation, because the market is much less efficient now."

In a recent paper, DeRosa-Farag examines how leverage cycles rarely run together. For example, financials have continued their effort to deleverage while renewed CEO confidence and advantageous financing is causing leverage to tick up in corporates. Additionally, households are at an inflection point after shifting from a position of broad deleveraging back to using leverage. All of these moves are set against a back drop of government intervention into markets through quantitative easing and regulation.

"In retrospect, the......................

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. Star names struggle as smaller hedge funds make hay[more]

    From eFinancialnews.com: Many big-name funds have been hit by sharp reversals in markets, including US government bonds and UK stocks, and have struggled to extricate themselves from positions that have gone bad. According to data group eVestment, hedge funds below $250 million in size are up 4.1% t

  2. North America - Acela fight splits hedge fund Connecticut and old money enclaves[more]

    From Bloomberg.com: Connecticut’s residential coastline is two worlds, the one of newcomer millionaires and one whose wealth and New England roots span generations. Now, their differences over a rail route threaten to gum up plans for the U.S. Northeast’s fastest-ever trains. About 30 miles from Man

  3. Activist News - Caesars offers creditors another $1.6bn, would spell end of hedge fund ownership, Activist investors double chance of CEO exits[more]

    Caesars offers creditors another $1.6bn, would spell end of hedge fund ownership From Calvinayre.com: Casino operator Caesars Entertainment has improved its offer to junior creditors to over $5b, but the offer is only good until Friday. On Wednesday, Caesars added an extra $1.6b to the $

  4. Nobel Sustainability Trust, Prince Albert II of Monaco help launch major new initiative to drive sustainable technologies[more]

    Matthias Knab, Opalesque: The Nobel Sustainability® Trust ("NST") is leading a major new initiative to finance, incubate and accelerate the development of clean technologies. The initiative will start with the formation of the Nobel Sustainability Fund® ("NSF"). NSF will drive faster access t

  5. Comment - ‘Gut feeling’ measurable in hedge fund traders, How hedge fund managers can use blockchain to maximize benefits[more]

    ‘Gut feeling’ measurable in hedge fund traders From Laboratoryequipment.com: “Gut feeling” is an intangible – an automatic hunch – based on prior experience for some people. But the “gut feeling” is actually a measurable response developed in professionals doing some high-risk work, acco