Friday, 25 July 2014
Last updated 6 hours ago
Jan 29 2014 | 10:36am ET
Banks have paid out tens of billions of dollars in recent years to settle allegations—both from regulators and investors—stemming from the subprime mortgage crisis. Hedge funds are betting that those deals are just the tip of the iceberg.
Hedge funds are behind one of the biggest bets on the market right now: That banks will be forced to pay out even more to settle even tougher lawsuits. And the hedge funds themselves are often behind those lawsuits, The New York Times reports.
Hedge funds have been buying up mortgage-backed bonds that have been the target of investor lawsuits. Those bonds could soar in price if banks lose or settle those lawsuits—or if investors think they'll lose or settle. And there are as many as $200 billion worth of them out there, according to Nomura.
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…