Fri, Dec 9, 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. Institutions - Texas County & District culls 5 hedge funds, reallocates to existing managers, Kentucky board gives final approval to halve hedge fund portfolio, $38bn Finnish fund moves assets to U.S. as Europe flounders, South Korea’s National Pension Fund holds 5% stake in 62 listed companies[more]

    Texas County & District culls 5 hedge funds, reallocates to existing managers Texas County & District Retirement System, Austin, continues to reduce the number of hedge funds, but not the size of its $6.2 billion hedge fund portfolio. It will redeem a total of $760 million from five hedg

  2. Opalesque Roundtable: Australian family offices search for good risk adjusted returns, happy to pay for skill[more]

    Komfie Manalo, Opalesque Asia: Australian family offices want foremost good risk adjusted returns, and they are happy to pay for the skill, and in some cases, the limited capacity of an active manager. Jonas Daly, Head of Distribution at B

  3. StepStone announces close of Swiss Capital acquisition[more]

    StepStone Group LP announced it has successfully closed the acquisition of Swiss Capital Alternative Investments AG, one of the leading private debt and hedge fund solutions providers in Europe. The transaction was originally announced in May 2016, and has been in the process of receiving regulatory

  4. Investing - Stephen Cohen investing $275m in free clinics treating veterans' mental health issues, California Resources loses favor with hedge funds[more]

    Stephen Cohen investing $275m in free clinics treating veterans' mental health issues From Healthcarefinancenews.com: …Now, a new chain of free mental health clinics for vets has opened in five cities across the United States to fill the gap. The much-needed new treatment is underwritten

  5. Hedge funds flat in last week of November 'in sympathy with markets’[more]

    Komfie Manalo, Opalesque Asia: Hedge funds were close to flat in the last week of November in sympathy with markets, which took a pause ahead of the OPEC meeting and Italian referendum. The Lyxor Hedge Fund Index was -0.1% as of end November 29 (-1.7% YTD), according to the latest