Highbridge Chief Sees Hedge Funds As 'Shadow Banking System'

Dec 5 2011 | 11:54am ET

The head of a bank-owned hedge fund told a recent industry conference that hedge funds will be the new banks.

As actual banks, larded down with debt and facing tighter capital requirements, become more gun-shy about lending, hedge funds are positioned to take their place, Highbridge Capital Management CEO Glenn Dubin said.

"The most significant and scalable opportunity that we see is in private credit," Dubin told a Bloomberg Link conference last week. The "illiquidity premium is only going to go up as more and more companies go to the shadow banking system to get financed for their businesses."

Highbridge is owned by JPMorgan Chase.


In Depth

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Lifestyle

Einhorns Busts At WSOP, Finishes In 173rd

Jul 15 2014 | 10:48am ET

Greenlight Capital founder David Einhorn’s World Series of Poker won’t end at...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note