Monday, 30 March 2015
Last updated 16 min ago
Apr 16 2007 | 11:25am ET
Investing in hedge fund firm-issued bonds may be just as speculative as having those firms manage your money in their funds, according to Moody’s Investor Service. The rating agency, which is set to begin rating hedge fund Citadel Investment Group’s debt, warned it’s going to be tough for alternatives firms to earn coveted investment-grade status.
“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,” Moody’s said in a report issued this month. “Despite some convergence, the orientation and structure of hedge funds remain materially different from those of securities firms and asset managers, or even structured investment vehicles.”
The firm said it looks for diversification, operational quality, redemption limits and liquidity management, among other things, in determining a bond’s investment-grade bona fides.
Citadel issued $500 million in five-year notes in December, which have already been deemed investment-grade by Fitch Ratings and Standard & Poor’s, though the latter awarded it only a triple-B rating, the lowest investment-grade rating.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…