A report from Hedge Fund Research says the second quarter brought 125 hedge fund closures, the lowest total since Q3 of 2007, although the number of funds opened was the fewest since Q4 of 2008. The second quarter's number of hedge fund openings surpassed the total of liquidations for the fourth consecutive quarter, HFR says.
Alternative investments accounted for 7.2% of overall assets under management by US advisers in 2017, up from 5.7% the year before, Cerulli Associates said in a report. About 40% of advisers surveyed said they used alternative investments, according to the report.
Investors are increasingly pursuing the market for nonperforming loans in Italy and throughout Europe, as distressed credit managers have sought to provide attractive returns to the backers of such loans and help banks get rid of the bad assets. Buyers of nonperforming loans, however, can face legal, collateral and leverage risks, experts say.
The Securities and Exchange Commission is considering changes to accredited-investor limits that could let more small investors take a stake in tech startups. However, a study by The Wall Street Journal shows the number of US households invested in private companies is already 10 times what it was when the SEC adjusted accredited-investor rules in the 1980s.
Markets are tipped to scour remarks from four Bank of England officials as they make the first public appearances by central bank leadership since an interest-rate increase last month. Traders see a 40% chance of a rate increase before Brexit in March and a more than 70% chance of one in May.
Just because fines from enforcement activity decreased 7.2% last year and continue to decline this year does not mean the Securities and Exchange Commission is not policing the market, says Stephanie Avakian, co-director of enforcement. "Any assessment that suggests our effectiveness should be measured solely based on the number of cases we bring over any particular period of time is misguided," she says.
A drop in the basis between yen interest-rate swaps cleared at LCH and at Japan Securities Clearing to 4.13 basis points from 7.63 basis points is attributed to a Sept. 4 speech by Commodity Futures Trading Commission Chairman J. Christopher Giancarlo. Giancarlo indicated US clients would be allowed to clear swaps at non-US central counterparties that have "comparable, comprehensive supervision and regulation."
Jeremy Corbyn, head of the UK Labour Party, said he will support a second Brexit referendum if members of his party vote for one. However, he said a general election would offer a better way to resolve the issue.