Higher collateral demands have reduced hedge fund systemic risk, say Risk Europe panellists

Hedge funds do not pose the same level of systemic risk as they did pre-financial crisis, because of the higher levels of collateral demanded by banks, said panellists at the Risk Europe conference in Brussels on April 6.

Banks were very quick to change collateral terms with hedge funds after the crisis, said Vasilios Siokis, chief risk officer at Cheyne Capital Management. He said the procedures around margin terms for hedge funds with banks have completely changed post crisis - the banks are

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: