Fri, Mar 29, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

Marshall Wace, hedge funds are looking for safe haven from biased European regulations

Monday, February 29, 2016

Komfie Manalo, Opalesque Asia:

Hedge funds are looking for safe refuge from unfair European regulations, claimed Paul Marshall, CIO of Marshall Wace. Writing an opinion piece for the Financial Times, Marshall said that instead of being rational, the European Commission responded to the 2008 financial crisis by launching an onslaught on hedge funds while leaving the banks and their lobbyists mostly untouched.

Marshall wrote, "Even shortly after the financial crisis, there was widespread agreement among regulators and central banks about its origins: an overleveraged U.S. property market and overleveraged banks. Hedge funds had a walk-on part, a small number of them as winners from the calamity, most as victims."

In response to the 2008 global financial crisis, the U.S. has introduced new regulations, including the Volcker rule to limit proprietary trading of banks, while the British government introduced the Vickers proposals that created a firewall between retail and invest banking. As an added measure, the Federal Reserve also required banks to undergo stress tests since May 2009 and since then, the U.S. bank leverage has fallen significantly, he said.

However, Marshall said that the EC has largely ignored the issue of bank leverage and instead pointed their direction towards the hedge funds. The commission introduced the Alternative Investment Fund......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1