Friday, 28 November 2014
Last updated 4 hours ago
Jul 24 2008 | 8:30am ET
Hedge funds are playing a smaller role in fixed-income trading, according to a new survey.
While banks and real-money investors greatly increased their fixed-income trading volume over the past year, hedge fund volume was flat, Greenwich Associates found. As a result, hedge funds’ share of U.S. fixed-income trading volume fell to 20% from 29% in 2006-2007. All told, U.S. fixed-income trading volume rose 12% in the past year.
Hedge funds still play the major role in some segments of fixed-income trading, with absolute trading volumes in high-yield credit products, leveraged loans and structured products increasing as hedge funds delever their portfolios. And hedge funds account for 95% of trading volume in distressed debt, and more than 50% in high-yield credit derivatives, structured credit and leveraged loans.
The Greenwich study also showed the Lehman Brothers remains the preferred fixed-income dealer to hedge funds, followed by JPMorgan Chase, Goldman Sachs, Deutsche Bank and Morgan Stanley.
Nov 4 2014 | 9:45am ET
Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…
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