Thursday, 31 July 2014
Last updated 15 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.
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…