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Moody`s says will be `very challenging` for bonds issued by hedge funds to achieve investment grade rating
From FinancialNews-US.com: Rating agency Moody's Investors Service, which is preparing to begin rating the debt of alternatives firm Citadel, has warned it will be "very challenging" for bonds issued by hedge funds to achieve an investment grade rating. Citadel, which has about $13bn (€9.6bn) under management, became the first hedge fund to issue bonds in the public market when it issued $500m in five-year notes last December.
In a report published this month Moody's said: "Our view is that investment grade ratings are possible, although the typical structural and operational features of a hedge fund make achieving one very challenging."...Full article: Source
Opalesque Exclusive: Moody`s says apart from fraud and operational failure, `sudden loss of liquidity following a market event` killed a number of funds
In a document provided by Moody’s to Opalesque (“Moody's Methodology for Rating Hedge-Fund Debt, Assessing Risks to Investors”), the firm also looks at hedge fund failures, “which have been spectacular despite an appearance of success immediately before them. The failures have recurring themes, ranging from various types of fraud and inadequate operational controls, to lack of discipline in risk management and in...................... To view our full article Click here
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