Download or read book Hedge Funds Financial Intermediation and Systemic Risk written by John Kambhu and published by DIANE Publishing. This book was released on 2008-04 with total page 214 pages. Available in PDF, EPUB and Kindle. Book excerpt: Hedge funds have become important players in the U.S. & global capital markets. These largely unregulated funds use: a variety of complex trading strategies & instruments, in their liberal use of leverage, in their opacity to outsiders, & in their convex compensation structure. These differences can exacerbate market failures associated with agency problems, externalities, & moral hazard. Counterparty credit risk mgmt. (CCRM) practices are the first line of defense against market disruptions with potential systemic consequences. This article examines how the unique nature of hedge funds may generate market failures that make CCRM for exposures to the funds intrinsically more difficult to manage, both for regulated institutions & for policymakers. Ill.
Download or read book Hedge Funds Financial Intermediation and Systemic Risk written by and published by . This book was released on 2007 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Hedge funds and their impact on financial stability Implications for systemic risk and how to control for it written by Dennis Sauert and published by GRIN Verlag. This book was released on 2014-06-23 with total page 105 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2011 in the subject Economics - Finance, grade: 2,0, Berlin School of Economics and Law, language: English, abstract: Over the past decades the architecture of the financial system has undergone a significant change, whereby the alternative investment industry has claimed an ever increasing importance and popularity. Hedge funds have taken the leading role in this development. From a handful of hedge fund managers in the United States (U.S.), hedge funds have been growing to a worldwide business at the forefront of sophisticated financial innovation. Despite their rising success in the alternative investment industry, only a few subjects in the financial world appear to create such diverse opinions as hedge funds do. On the one hand, there are policy makers and academics, which appreciate and highlight hedge funds’ main role in increasing profits and effectively diversifying risks in traditional portfolios. Moreover, Alan Greenspan, the former chairman of the Federal Reserve System (Fed), stated that hedge funds “have become major contributors to the flexibility of the financial system.” Provided with flexibility and light regulatory oversight, their participation in various markets has been proven important. Especially, due to the provision of liquidity, financial markets have become more efficient but also resilient by absorbing many financial shocks in past years, including the most recent financial crisis. On the other hand, there are also policy makers and academics, who claim that hedge funds are large enough to destabilize markets or even trigger financial crises. A common concern following the near failure of Long Term Capital Management (LTCM) in 1998 is that one single hedge fund, as a highly leveraged investment pool, can create systemic risk to the worldwide financial system. Such ongoing concern about the vulnerability paired with the tremendous development and opaque nature of hedge funds, emphasize their potential threat to financial stability. Despite the fact that only little is known about these loosely regulated private investment pools, an unstudied reaction to 1998 is to regulate them. Against this background, the aim of this paper is to give the reader a better oversight and understanding of the hedge fund industry by deeply analyzing and discussing their beneficial characteristics but more importantly the issue of how they may be an essential threat to the financial system. Therefore, the paper is split into four main parts. The first part provides the reader with an overall picture of the unfolding of the hedge fund industry from the beginnings...
Download or read book Hedge Funds Systemic Risk and Dodd Frank written by Lloyd S. Dixon and published by Rand Corporation. This book was released on 2013 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: These proceedings summarize the key themes and issues raised during a symposium on September 24, 2012, hosted by the RAND Center for Corporate Ethics and Governance. Discussion focused on the ways in which hedge funds might contribute to systemic risk and the extent to which recent financial reforms address these potential risks. Participants included thought leaders from industry, government, and academia.
Download or read book Hedge Funds and Systemic Risk in the Financial Markets written by United States. Congress. House. Committee on Financial Services and published by Government Printing Office. This book was released on 2007 with total page 144 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Hedge Funds and Systemic Risk written by United States. Congress. House. Committee on Financial Services and published by . This book was released on 2007 with total page 100 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Hedge Funds and Systemic Risk written by Lloyd Dixon and published by Rand Corporation. This book was released on 2012-09-18 with total page 146 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report explores the extent to which hedge funds create or contribute to systemic risk, the role they played in the financial crisis, and whether and how the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 addresses the potential systemic risks posed by hedge funds.
Download or read book Hedge Funds and Systemic Risk written by Wulf A. Kaal and published by . This book was released on 2016 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: The public media and politicians regularly debate the potential for hedge funds to contribute to systemic risk in financial markets. Because the hedge fund industry experienced substantial growth over the past two decades, concerns about hedge funds' systemic risk have increased and regulators have taken measures to mitigate possible risks associated with these funds. The chapter summarizes the pre- and post-crisis debate and highlights the post-crisis evidence regarding hedge funds' alleged systemic risk. In particular, the authors examine evidence regarding specific factors surrounding hedge funds' possible contributions to systemic risk, including risk management incentives, leverage, liquidity characteristics, regulation, financial stability, transparency, and their potential to induce and perpetuate market contagion.
Download or read book Hedge Funds and Systemic Risk written by Lloyd Dixon and published by Rand Corporation. This book was released on 2012-09-18 with total page 146 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report explores the extent to which hedge funds create or contribute to systemic risk, the role they played in the financial crisis, and whether and how the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 addresses the potential systemic risks posed by hedge funds.
Download or read book Hedge Funds written by H. Kent Baker and published by Oxford University Press. This book was released on 2017-07-26 with total page 697 pages. Available in PDF, EPUB and Kindle. Book excerpt: Hedge Funds: Structure, Strategies, and Performance provides a synthesis of the theoretical and empirical literature on this intriguing, complex, and frequently misunderstood topic. The book dispels some common misconceptions of hedge funds, showing that they are not a monolithic asset class but pursue highly diverse strategies. Furthermore, not all hedge funds are unusually risky, excessively leveraged, invest only in illiquid asses, attempt to profit from short-term market movements, or only benefit hedge fund managers due to their high fees. Among the core issues addressed are how hedge funds are structured and how they work, hedge fund strategies, leading issues in this investment, and the latest trends and developments. The authors examine hedge funds from a range of perspectives, and from the theoretical to the practical. The book explores the background, organization, and economics of hedge funds, as well as their structure. A key part is the diverse investment strategies hedge funds follow, for example some are activists, others focusing on relative value, and all have views on managing risk. The book examines various ways to evaluate hedge fund performance, and enhances understanding of their regulatory environment. The extensive and engaging examination of these issues help the reader understands the important issues and trends facing hedge funds, as well as their future prospects.
Download or read book Hedge Funds and Systemic Risk in the Financial Markets written by United States House of Representatives and published by . This book was released on 2020-01-15 with total page 142 pages. Available in PDF, EPUB and Kindle. Book excerpt: Hedge funds and systemic risk in the financial markets: hearing before the Committee on Financial Services, U.S. House of Representatives, One Hundred Tenth Congress, first session, March 13, 2007.
Download or read book Regulating Hedge Funds in the EU written by Alexandros Seretakis and published by Kluwer Law International B.V.. This book was released on 2022-01-13 with total page 298 pages. Available in PDF, EPUB and Kindle. Book excerpt: Hedge funds remain the most controversial vehicles of the alternative investment funds universe. Their opaque nature, alleged role in major crises around the world and perceived lack of investor protection have repeatedly led to calls for greater regulation. Yet despite its tremendous growth, the hedge fund industry is still shrouded in a veil of mystery largely due to the highly complex and dynamic trading strategies employed by hedge funds and the scarcity of information about them. For the first time in one comprehensive volume, this concise but thorough guide explains how hedge funds work, analyses risk, compares the European Union (EU) and United States (US) systems and proposes reforms to the European framework in order to improve its resilience. Focusing on the contribution of the hedge fund industry to systemic risk, the author elucidates the complex world of hedge funds and the legal issues linked to it. The analysis proceeds as follows: introduction to the world of hedge funds – definition, main characteristics, organizational structure, investment strategies, and benefits; deeply informed exploration of the dangers posed by hedge funds; documentation and examination of the major incidents connecting hedge funds and financial crises; rationales for regulation of hedge funds; comparison of relevant legislative developments in the US and EU; and proposals for strengthening the current EU supervisory and regulatory framework. Guiding legislation, such as the EU Alternative Investment Fund Managers Directive and the US Dodd-Frank Act, is analysed, along with topical issues such as hedge fund activism. Because the direction that hedge fund regulation takes in the future has implications for the Eurozone and systemic risk in the wider financial system, this book will be of immeasurable value to professionals in both the legal and business communities. It will be welcomed by corporate lawyers, regulatory authorities, policymakers and academics in both business-related and finance-related disciplines.
Download or read book The Operations of Hedge Funds and Their Role in the Financial System written by United States. Congress. House. Committee on Banking and Financial Services. Subcommittee on Capital Markets, Securities, and Government Sponsored Enterprises and published by . This book was released on 1999 with total page 164 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Hedge Funds Overview of Regulatory Oversight Counterparty Risks and Investment Challenges written by Orice M. Williams and published by DIANE Publishing. This book was released on 2009-12 with total page 18 pages. Available in PDF, EPUB and Kindle. Book excerpt: In 2008, two reports were issued on hedge funds (HF) -- pooled invest. vehicles that are privately managed and often engage in active trading of various types of securities and commodity futures and options contracts -- highlighting the need for continued regulatory attention and for guidance to better inform pension plans on the risks and challenges of HF invest. For the first time, HF are allowed to borrow from the Fed. Reserve. This testimony discusses: (1) fed. regulators' oversight of HF-related activities; (2) potential benefits, risks, and challenges pension plans face in invest. in HF; (3) the measures investors, creditors, and counterparties have taken to impose market discipline on HF; and (4) the potential for systemic risk from HF-related activities.
Download or read book Risks that Hedge Funds Pose to the Banking System written by United States. Congress. House. Committee on Banking, Finance, and Urban Affairs and published by . This book was released on 1994 with total page 392 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Hedge Funds written by Orice M. Williams and published by DIANE Publishing. This book was released on 2008-07 with total page 55 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since the 1998 near collapse of Long-Term Capital Mgmt. (LTCM), a large hedge fund -- a pooled invest. vehicle that is privately managed and engages in active trading of various types of securities and commodity futures and options -- the number of hedge funds has grown, and they have attracted invest. from institutional investors. This report: (1) describes how fed. financial regulators oversee hedge fund-related activities under their existing authorities; (2) examines what measures investors, creditors, and counter-parties have taken to impose market discipline on hedge funds; and (3) explores the potential for systemic risk from hedge fund-related activities and describes actions regulators have taken to address this risk. Illustrations.
Download or read book Regulating Hedge Funds and Other Private Investment Pools written by United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs. Subcommittee on Securities, Insurance, and Investment and published by . This book was released on 2010 with total page 108 pages. Available in PDF, EPUB and Kindle. Book excerpt:
