Friday, 12 February 2016
Last updated 12 hours ago
Apr 5 2013 | 10:28am ET
Hedge funds are hungrier for risk, according to a quarterly Federal Reserve survey of derivatives brokers.
Almost half of the firms polled for the Senior Credit Officer Opinion Survey on Dealer Financing Terms reported that their most-favored hedge fund clients had shown an increased appetite for credit risk over the past three months. About a quarter saw a similar increase among their other hedge fund clients and insurance companies.
A quarter of the over-the-counter derivatives dealers also noted that hedge funds had increased their use of leverage over the past three months.