Sun, Feb 7, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge fund trading volume jumps, makes comeback in fixed income - Greenwich Associates

Thursday, December 16, 2010
Opalesque Industry Update - The results of Greenwich Associates’ 2010 European Fixed Income Study show that following two years of crisis, hedge funds’ European fixed-income trading volume jumped 47% from 2009 to 2010.

As the need for investor liquidity abated and concerns about hedge funds as trading counterparties waned, hedge fund activity picked up. The jump in hedge fund trading volumes helped hedge funds increase their presence in European markets. In 2009, hedge funds generated 9% of total European fixed-income trading volume. In 2010 that share surged to 14%.

Expanding Presence in Credit Products and Government Bonds
Hedge funds are generating an even larger share of total trading volume in individual fixed-income products. For example, hedge funds have always been a major source of trading volume in emerging markets, and in 2010 they generated almost half of all emerging markets trading volume in Europe. Hedge funds also generated 46% of trading volume in European high-yield credit and 41% in leveraged loans. Hedge funds became much more active in investment grade credit last year. In 2009, they generated just 7% of total trading volume in investment grade credit. In 2010, that share jumped to 20%. From 2009 to 2010, hedge funds also accounted for an impressive 7% of overall trading volume in European government bonds.

“Overall, cash bonds made up a much bigger part of hedge fund trading volumes in 2010,” says Greenwich Associates consultant Peter D’Amario. “In 2009, hedge fund trading volume was made up of 64% derivatives and 35% cash bonds; this year, cash bonds made up 55% of hedge fund trading volumes.”

(press release)

Source

kb

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. How Einhorn survived a nightmare year[more]

    From Bloomberg.com: Even when a hedge fund has an awful year, which was the case for David Einhorn's Greenlight Capital, there are lessons to be learned. Many funds would have had a tough time surviving a year like Einhorn experienced in 2015, when all the stars seemed to align against him and Green

  2. Legal - Hedge fund founder wins early release in U.S. insider trading case, Gramercy seeking $1.3 billion from Peru over land-bond dispute[more]

    Hedge fund founder wins early release in U.S. insider trading case From Reuters/Streetinsider.com: Former hedge fund manager Doug Whitman on Tuesday won a reprieve from serving the remainder of his two-year sentence for insider trading after several judges expressed skepticism that his 2

  3. Investing - David Einhorn finds a winner in Michael Kors[more]

    From Thestreetinsider.com: Greenlight Capital hedge fund manger David Einhorn took his lumps in 2015. The fund lost over 20 percent on the year amid bets gone bad being long a plunging SunEdison and short a couple high-flying FANG stocks. However, today Einhorn is again showing his stock picking pro

  4. Investing - Avenue Capital's Marc Lasry: We like European bank loans, Comment: A bunch of hedge fund managers are chasing the 'dream of crushing a major structural problem'[more]

    Avenue Capital's Marc Lasry: We like European bank loans From CNBC.com: European banks are under immense pressure, but at least one prominent hedge fund has found what it thinks is a good opportunity in the wreckage. Marc Lasry, co-founder and chief executive of hedge fund Avenue Capital

  5. Computer-driven hedge funds make money during January’s selloff[more]

    Komfie Manalo, Opalesque Asia: Commodity trading advisers (CTAs) that use computer programs to guide how they trade, made millions of dollars during last month’s market selloff on the back of declining oil prices and global equities and big moves in currencies. Data provider