Hedge funds dig deep in direct corporate loan market

Hedge funds are increasingly making direct loans to corporations in situations banks and other traditional lenders may not take on. But are they taking on excessive risks?

Hedge funds have been looking increasingly at the loan market in its various guises, believing they can wring profits from it that banks and traditional loan institutions cannot.

On the other side of the loan market, firms have increasingly looked to hedge funds as lenders willing to take on risks others may not - whether this is due to the creditworthiness of the borrower in question, or the structure of the loan deal itself.

beyond the mainstream

Matthew Hoffman, chief investment officer of New

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