Feature
New approach to risk management
Unencumbered cash is probably “the most important risk management tool at the disposal of a hedge fund,” according to a research paper from Columbia University.
Divergence, convergence and common trends in global industry
Are European and US hedge fund managers diverging?
Alternative Fund Administration Survey 2010
Changing fortunes: Competition for alternative assets is intensifying as the 2010 survey results show some ranking changes. Sophia Morrell reports on the shifting environment reflected in this year's alternative fund administration survey.
Between volatility and variance
Banks and investors were hammered on short single-stock variance positions during the financial crisis, leading many dealers to withdraw from the variance swap market. The alternative that some have reverted to is the volatility swap, although this has…
Second-hand values
The demand for transparency and liquidity makes trading in and out of a structured product extremely attractive to investors. This has resulted in healthy secondary markets across Europe, so why has the UK been so slow to emulate its continental…
Funds the key to unlocking Spanish market
Structured products distribution in Spain stalled during the financial crisis as banks turned away from open architecture. The answer seems to lie in fund-based products, for which the distribution networks remain open. Richard Jory reports from…
Brics back in fashion
The debt crisis in Greece has brought volatility to the eurozone and given global markets the jitters. For many private banking accounts the affair has further underlined the attractiveness of emerging markets, where budget deficits are often lower and…
Locked out of longevity
Despite regulatory scrutiny of life settlement products and concerns over the complexity of assessing longevity risk, the institutional structured product market in the asset class is growing exponentially. But will these products ever be suitable for…
Counting the cost of counterparty risk
A few years ago no-one worried about counterparty credit risk. Then a year ago that was all anyone cared about. As markets begin to settle down, the shake-up could have longer-term implications for the structured products market. By John Ferry
Risk management in vertically integrated energy companies
Once risk management is seen as more than just a control function, the business operations of vertically integrated energy companies present numerous opportunities, especially for hedging strategies. Jaime Román and Santiago Tejero of Endesa discuss
Binge then bust
Politicians have recently expressed alarm at a cross-currency swap conducted between Greece and Goldman Sachs in 2001, which allowed the sovereign to reduce the debt it reported in its public accounts. But other examples now coming to light show the…
No guarantee from Lehman?
Lehman Brothers Holdings Inc is expected to challenge an apparent pledge to its subsidiaries to guarantee their liabilities and obligations. If successful, the bankrupt estate could render hundreds of billions of dollars worth of claims invalid, and even…
Building the blocks for energy risk management in India
The concept of using derivatives for risk management is still relatively new to utilities in India and viewed with caution by market regulators. Katie Holliday talks to market experts about how they expect the discipline of risk management to develop
Focus on India: Power market regulation
Despite a growing will to liberalise power markets in India, progress has been slow so far. However, regulatory changes are finally moving the market towards better transparency and competition, finds Katie Holliday
Economic uncertainty adds to challenge of hedging in US power markets
Uncertainty has plagued the US power sector since the financial crisis. Although many believe an economic recovery is in sight, forecasting load growth continues to be a headache for those looking to manage risk in this market. Pauline McCallion reports
Low US gas price spurs shale oil industry
The development of shale gas production in the US is expected to change the face of the natural gas sector but could it make similar waves in the US oil production industry? Pauline McCallion examines the outlook for US shale oil